Inside the Gallagher UK Cyber Market Report 2026
Gallagher have published their 2026 report on the UK’s cyber market. The report provides an update on the growth of the cyber insurance sector, as well as claims trends, new technologies and possible vulnerabilities that may be tested. Businesses and corporations will be invested in the resilience of the market, learning about emerging threats and increased coverage options.
The UK’s cyber sector has grown to £13.2 billion over 2025. More and more business owners understand the risks posed by cyber threats, having read front-page news about the catastrophic cyber attacks last summer. The Marks & Spencer retail outage stemmed from social engineering, the bank Sepah suffered data theft and extortion, the Jaguar Land Rover involved supply chain disruption, and the Kettering Health ransomware attack forced procedure cancellations and ambulance diversions. Cyber threats are prevalent and ever-increasing, leading to losses calculated in the millions.
At Romero Insurance, we review the UK Cyber Market Report 2026 and pick out the highlights for the benefits of business owners.
What to learn from the Cyber Market Report 2026
Cyber Market Trends in 2026
Smaller businesses are now utilising digital software and applications more and more. Tech and software are cheaper accessible and more user-friendly than ever before, Insurers are therefore having to adapt and take on smaller policies. The entry barrier for acquiring cyber insurance is lower, but the same standards of cyber security apply and must be upheld.
Smaller businesses can include those lower down in the supply chain; they require cyber policies to defend themselves as well as the interests of a larger distributor. Policy conditions have remained buyer-friendly, and broader wordings around ransomware and bail outs are now commonplace. Business interruption windows are longer and claimants typically face shorter wait times for payouts.
Emerging Cyber Technologies in 2026
New cyber technology is benefitting both businesses and insurers. Daily operations are being revolutionised and reshaped due to these advancements. One key technology is artificial intelligence and how It is being adopted by insurers. Phishing detection methods and post-incident data reviews are being advanced by Ai. Yet, ai-related mistakes is now a prevalent risk that has been included in existing polices.
With new technology come new threats and vulnerabilities. Because of the fast-paced nature of emerging technologies, insurers are having to stay on top of vulnerabilities and continually advise clients on how to protect themselves. Insurers are researching staff training, authentication and robust network configurations.
More Cyber Breaches than ever before
Government statistics show four in ten businesses reported a cyber security breach in 2025. The UK Cyber Market Report 2026 posits that supply chains are particularly vulnerable, and buyers are now coordinating with their key suppliers on best practices. They have requested access to digital logs in order to share their knowledge and resources.
The increase in cyber security issues are adversely impacting smaller businesses who typically have fewer security measures in place. Insurers are more commonly offering affordable cyber cover to small and medium business. SMEs that are showing progress are being rewarded by insurers.
Ransomware is the most prevalent cyber security risk
Ransomware was the main cause of losses in 2025, at 52%. The cyber market report says that ransom amounts have decreased, yet still sit within the millions of pounds. Because of the continued exposure to major ransomware threats, insurers are now more adept at contacting specialist teams and managing ransomware negotiations. Ultimately claims are being handled more effectively, and are successfully reducing the financial impact of attacks.
Other prevalent cyber security risks include email compromises, phishing attacks, and vulnerabilities in third-party affiliates. The police are now more involved, operating through live group chat with IT teams and businesses.
What the future looks like for Cyber Security and Cyber Insurance
It is expected that more business will be looking for cyber cover, and as coverage widens and conditions relax, more insurers will be placing policies. This will only be accelerated if another major cyber breach makes front page news this summer.
Businesses will be expected to carry out staff training, reporting, and cyber protection such as authentication. They must notify insurers and brokers of any new technology they adopt. And businesses are expect to collaborate with their smaller suppliers in order to benefit the welfare of the supply chain.
The cyber market report has identified a pattern of criminals exploiting vulnerabilities to gain access to data which is then sold to ransomware groups. Therefore small cyber breaches, or multiple breaches over a short period of time, should demonstrate the intention for a second larger ransomware attack – hence small attacks should be treated diligently, with a full review of cyber security measures.
How a dedicated insurance broker is important for business owners?
A dedicated insurance broker will help business owners understand the importance of cyber security and cyber insurance, and lay out the necessary safety measures. Dedicated insurance brokers negotiate a cyber insurance policy best suited to your business, and achieve an ideal premium and conditions.
Business owners should adapt their processes and adopt techniques to navigate the new world of emerging cyber trends and attacks. Recommendations from top insurance brokers include staff training, awareness, reviewing vulnerabilities, implementing authorisations, building a suitable incident response plan and updating cyber risk assessments. By implementing these actions, business owners can remain safe in the knowledge they are being diligent and effectively reducing the likelihood of an attack.
To discuss cyber insurance – contact Romero Insurance Brokers to talk to an expert.
To learn more about the UK Cyber Market Report 2026 – see here
To read more about cyber security measures – check out our Cyber Security Whitepaper.