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UK SMEs uninsured despite increasing concern about cyber attacks

A new GlobalData survey has revealed that many small and medium-sized market enterprises (SMEs) in the UK remain uninsured against cyber attack risks despite increasing wariness.

The 2021-2022 UK SME insurance survey found a rise in businesses reporting risks, with 32.7% of respondents answering that their concern regarding cyber-attacks “increased” or “significantly increased” compared to 30.7% in the previous year.

GlobalData Senior Insurance Analyst Ben Carey-Evans attributes the slight increase to notable cyber-attacks against Revolut and Holiday Inn in the past month.

“These prominent attacks will raise awareness among SMEs that anyone can be targeted and that cyber attackers can cause disruption in a range of different ways,” Mr Carey-Evans said.

“Larger businesses are also more likely to have more robust IT systems in place, so it is likely to be easier to attack an SME.”

Reported figures show that despite the increase in concern, many SMEs continue to be uninsured against cyber-attacks, with only 56.2% of medium businesses, 40% of small businesses and 16.8% of micro-businesses holding a cyber protection policy within this year.

Mr Carey-Evans says the discrepancy between consumer concern and protection highlights the importance for insurers to inform customers about the need for cover.

“Insurers therefore need to show they can help businesses stop attacks by offering preventative coverage, including security systems and staff training, which would make the often expensive premiums worth paying,” he said.