For small and medium-sized enterprises [SMEs], rising premiums and stricter policy requirements are making it harder to stay protected without breaking the bank.
The good news? Investing in your cybersecurity posture, especially through services like Managed Detection and Response (MDR), can significantly reduce your cyber insurance costs. And that’s where CSG comes in.
Why cyber insurance is getting pricier for SMEs
Cyber threats are escalating, and insurers are responding by tightening their underwriting standards.
Insurers now demand proof of businesses using the highest level of cyber security measures, like multi-factor authentication [MFA], endpoint protection and incident response plans, before offering coverage.
Without these, premiums skyrocket or coverage is denied altogether.
UK cyber insurance market growth
- The UK cyber insurance market is projected to reach £1.2 billion in premiums by the end of 2025, with a 13.4% CAGR through 2030 [Sophos].
- The UK cybersecurity sector itself grew to £13.2 billion in revenue in 2024, up 12% from the previous year [Sophos].
Healthcare sector
- Healthcare organisations in the UK are increasingly adopting cyber insurance due to high-profile ransomware attacks and regulatory scrutiny.
- Insurers are focusing more on cyber controls in healthcare, given the high claims volume and sensitivity of patient data.
Financial services
- Financial institutions remain frequent targets of cyber attacks but have shown resilience due to strong cyber security frameworks.
Manufacturing sector
- UK manufacturers are facing increased risks from the integration of IT and operational technology (OT) systems.
Cross-sector trends
- Buyer-friendly market conditions have led to broader coverage and reduced premiums, encouraging uptake across sectors like aviation, gambling and hospitality, which previously underinvested in cyber protection.
Enter MDR: your cyber risk reduction
Managed Detection and Response [MDR] is a proactive cyber security service that provides:
- 24/7 threat monitoring
- Rapid incident response
- Expert-led threat hunting and remediation
MDR doesn’t just protect your business, it makes you a lower-risk client in the eyes of insurers. That translates to:
- Lower premiums
- Fewer policy exclusions
- Faster claims processing
- Access to broader coverage
Set up your free Cyber Risk audit with CSG
Learn more about where your business stands with CSG today.
