An estimated £197m was paid out by insurance companies to help businesses recover from cyber incidents in 2024, new figures from the Association of British Insurers (ABI) have shown.

The trade body for insurers also has called for cyber insurance to become a part of every organisation’s modern risk management strategy.

Data from firms participating in the ABI’s cyber data collection revealed a 230% year-on-year increase in the amount paid out to support firms with cyber-attacks, £138m more paid out than in 2023.

Malware and ransomware alone accounted for over half (51%) of all claims, up from a total of 32% of all claims in 2023. The ABI said the figure highlights how increasingly sophisticated digital threats are causing more extensive damage, leading to higher payouts.

With cyber threats escalating, demand for protection also surged in 2024. The ABI’s figures also showed that 17% more policies were taken out than the previous year, presenting evidence that UK firms are prioritising protection against evolving digital risks.

Head of general insurance policy at the ABI, Jonathan Fong, stated that cyber insurance is “more than just a financial safety net”.

“The right policy not only supports businesses in the aftermath of an incident but can also help prevent attacks through access to expert advice, threat monitoring, and incident response planning,” Fong commented.

“With cyber threats continuing to grow in scale and sophistication, it needs to be a critical component of every organisation’s modern risk management strategy.”

Cyber insurance is proving to be indispensable in today’s digital economy, protecting businesses from costly breaches, ransomware, and email compromise while actively helping them prevent attacks and boost resilience.

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