In an important move that reflects the rapidly evolving cyber risk environment, the British Insurance Brokers’ Association (BIBA) is partnering with the UK government to develop a directory of accredited cyber insurance brokers. This initiative aims to help close a growing “protection gap” in the UK business community a gap that leaves many organisations underinsured or unaware of the right cyber coverage for their needs.
With cyber threats continuing to accelerate in frequency and complexity, the initiative signals a strategic attempt to improve awareness and accessibility of cyber insurance and elevate the overall cyber resilience of UK businesses.
Here’s why this matters and what organisations should know as the market adapts.
The Protection Gap: Why a Directory Matters
Cybercrime has surged over the past few years, and with it, cyber insurance claims have skyrocketed. In the UK alone, insurers paid out nearly £197 million on cyber claims in 2024 a 230 % year on year increase with malware and ransomware driving more than half of those losses.
Despite this, a significant protection gap persists among UK businesses, especially small and medium sized enterprises (SMEs). According to recent surveys, over 60 % of UK SMEs do not currently hold cyber insurance. Without clear access to qualified brokers who understand both cyber risk and insurance products, many firms simply don’t know where to start when it comes to protection.
That’s where BIBA’s cyber insurance broker directory comes in. By compiling a vetted list of specialist brokers with demonstrated expertise in cyber risk, the initiative hopes to make it easier for businesses to find the right adviser and coverage.
Building Market Confidence Through Expertise
One of the challenges with cyber insurance both in the UK and globally is that it is a complex, rapidly shifting product. Unlike traditional commercial lines such as liability or property insurance, cyber risk evolves daily as threat actors invent new tactics and technologies. This makes accurate risk assessment and tailored coverage all the more vital and only experienced brokers can truly deliver that.
BIBA’s CEO, Graeme Trudgill, has emphasised that a strong cyber insurance market is key to improving UK cyber resilience. By highlighting specialist broker expertise and helping businesses connect with the right advisers, the directory aims to push more organisations to adopt appropriate cyber cover and in doing so, lower the overall risk in the economy.
Importantly, the directory is being developed in collaboration with the Department for Science, Innovation and Technology, underscoring how cyber risk is increasingly seen not just as an operational concern, but as a national economic issue.
Why the Market Needs Better Signposting
Cyber insurance is no longer optional for organisations that operate digitally but navigating the market can be bewildering: policies vary widely in scope, terms and pricing; insurers take different approaches to underwriting cyber risk and without expert guidance, businesses can choose inadequate or inappropriate coverage that has real consequences such as; insufficient coverage can leave organisations facing costly out of pocket expenses following a cyber incident, or worse, gaps in incident response support when they need it most.
With cyber threats escalating, pressure on insurance markets has increased and so has the emphasis on finding the right intermediary who understands both technological risk and the insurance landscape. A directory can help streamline that search.
What This Means for Businesses and Brokers
For Businesses:
- Improved access to expertise: An accredited directory makes it easier to find brokers who understand the nuances of cyber risk and insurance
- Better policy outcomes: With expert guidance, businesses can secure policies that genuinely align with their risk profile rather than generic or inadequate solutions
- Increased resilience: More informed decisions help organisations not only transfer risk through insurance but also bolster their cyber security posture with appropriate incident response and mitigation frameworks
For Brokers:
- Recognition of specialisation: Brokers with demonstrable cyber expertise gain visibility, potentially attracting new clients
- Opportunity for differentiation: Firms that invest in cyber underwriting knowledge and advisory capabilities can stand out in a crowded market
- Driving standards: An accredited list encourages higher professional standards in cyber risk broking ultimately benefiting the entire ecosystem
The Bigger Picture: Cyber Risk and Insurance Growth
The surge in cyber claims and increasing demand for cyber insurance products underscores a broader shift in how UK businesses view digital risk.
Cyber insurance isn’t just a financial safety net; when structured correctly it comes with access to expert incident response teams, risk monitoring tools and mitigation services that can make a real difference in the event of a breach.
Meanwhile, forecasts show that cyber insurance is one of the fastest growing segments in the commercial lines market, with many brokers expecting it to outpace other emerging products.
Yet uptake remains uneven, particularly among smaller firms that may not have dedicated risk management teams. Initiatives like BIBA’s directory help counter that imbalance by demystifying the market and making expertise more visible and accessible.
Looking Ahead: Strengthening UK Cyber Resilience
As regulatory and market forces continue to push cyber risk to the forefront, the insurance sector’s role becomes more critical. In the UK, this is matched by broader policy moves to strengthen cyber defences across both public and private sectors including legislation targeting essential services and proposed frameworks to future proof national infrastructure.
By facilitating smarter insurance decisions through a credible broker directory, BIBA and the UK government can help organisations navigate a complex landscape not simply by transferring risk, but by encouraging smarter, more resilient approaches to cyber security.
For any business operating in the digital age, that’s not just good risk management it’s fundamental to long term planning and survival.
For more information about BIBA: https://www.biba.org.uk
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