Cyber insurers paid out over twice as much for UK ransomware attacks last year
Summary
The Association of British Insurers (ABI) reports that UK cyber insurance payouts rose sharply to £197 million in 2024, up from £59 million in 2023 — roughly a 230% increase. Ransomware and malware accounted for 51% of claims in 2024, up from 32% the year before. The ABI says the surge reflects growing attack sophistication and greater business disruption. Jonathan Fong of the ABI pointed to the broader role insurers play beyond pay-outs, including prevention, incident response and threat monitoring.
The dataset predates several major 2025 breaches — including costly incidents at Marks & Spencer, Jaguar Land Rover and others — which could push future insurance costs and claims even higher. The piece also covers the ongoing debate around whether cyber insurance incentivises ransom payments, with voices on both sides: US cyber policy officials calling for restrictions on covering extortion versus industry figures who argue bans would be ineffective for large organisations.
Key Points
- ABI recorded £197m in cyber insurance payouts for UK organisations in 2024, versus £59m in 2023 — roughly a 230% increase.
- Ransomware and malware were responsible for 51% of cyber claims in 2024, up from 32% in 2023.
- The ABI argues cyber insurance supports prevention and response (expert advice, threat monitoring, incident planning), not just financial recovery.
- Data excludes major 2025 incidents; large claims such as Marks & Spencer’s reported c.£100m could further raise totals for 2025.
- Some high-profile victims (e.g. Jaguar Land Rover) reportedly lacked comprehensive cyber cover, prompting government intervention in at least one case.
- Debate continues over whether insurance fuels ransom payments — some officials favour bans on covering extortion, while industry experts warn bans may not reduce payments and could undermine resilience.
- Insurers enforce baseline security measures as a condition of cover, which some experts say lifts overall security standards across organisations.
Context and Relevance
This story matters because it quantifies the rising financial impact of ransomware on UK organisations and highlights insurance’s central role in the cyber ecosystem. As attacks grow in scale and cost — and with 2025 producing several high-profile, high-cost breaches — expect pressure on premiums, tighter underwriting standards and possible regulatory changes around what insurers can cover.
For IT leaders, finance teams and risk managers, the article underscores two converging trends: (1) the real cost of operational disruption from cyber incidents is increasing, and (2) cyber insurance is evolving from a simple pay-out mechanism to a risk-management tool that can push organisations to meet minimum security standards.
Author style
Punchy: the piece gets straight to the point — big numbers, big implications. If you care about organisational risk, insurance strategy or the economic side of cybercrime, this is worth your attention — it signals material shifts in cost, policy and industry responses.
Why should I read this?
Look, it’s short and it’s stark: insurers are paying a lot more because attackers are getting smarter and causing more damage. If you handle risk, budgets or security for an organisation, this affects premiums, cover terms and whether you can even get insured. We’ve trimmed the full article down to the essentials so you can act — or at least argue convincingly at the next board meeting.
Article meta
Article Date: 2025-11-11T11:04:48+00:00
Author: Connor Jones
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