Cyber insurance knowledge gap leaves businesses exposed as Cybersecurity Awareness Month begins, warns Zing365
Insurance brokers are urged to reassess their cyber insurance knowledge amid growing concerns that gaps in cyber risk understanding could leave businesses exposed to financial, operational, and reputational losses after a cyber incident.
As organisations navigate a cyber threat landscape shaped by ransomware, phishing, social engineering and AI-enabled attacks, demand for informed guidance on cyber insurance continues to grow. At the same time, insurers are placing greater scrutiny on cyber controls, incident response planning and employee awareness when assessing risk and determining coverage terms.
Data from the UK Government’s Cyber Security Breaches Survey previously found that 43% of UK businesses experienced a cyber security breach or attack during the past 12 months, equivalent to approximately 612,000 organisations nationwide.
The financial consequences of cyber incidents are also increasing. According to IBM’s Cost of a Data Breach Report 2026, AI-enabled breaches now cost organisations an average of $6 million globally, while one in four malicious breaches are now AI-enabled – an increase by 56% over last year.
However, as cyber risks become more complex and underwriting expectations continue to evolve, many brokers remain uncertain when discussing cyber exposures, policy wordings and insurer requirements with clients.
James Read, managing director of Zing365, the insurance training specialists, believes this is creating a greater need for brokers who can confidently guide clients through an increasingly technical area of risk.
“Most businesses now accept that a cyber incident is something they need to plan for. What we’re seeing, though, is that many still underestimate how quickly a cyber event can disrupt operations, affect customers and create financial pressure. That’s where informed advice becomes so important.”
“Clients are looking for clear and practical conversations rather than technical jargon. They want straightforward answers on what cover is needed, what insurers expect, and where gaps in their cyber strategy still sit. Those conversations are becoming more detailed as insurers are asking more questions, and cyber exposures are changing all the time.”
Recent years have seen insurers adopt a more rigorous approach to cyber underwriting, with measures such as multi-factor authentication, staff training and documented response plans becoming common requirements for many organisations seeking cover.
According to Read, brokers have a valuable role to play, particularly when working with SMEs that may not have access to dedicated cyber security expertise.
“For many SMEs, cyber can feel overwhelming. They know they need to take it seriously, but they’re often trying to make decisions without in-house specialists to guide them. A broker who understands the subject can make a real difference by helping clients focus on the areas that matter most.”
“Similarly, the rise of AI is changing the nature of these conversations. We’re seeing these tools make phishing and impersonation attempts even more convincing for the untrained eye. Brokers need to be up to speed in understanding a broader range of threats and be comfortable discussing them with clients in detail.”
For Read, the issue is ultimately about confidence and communication.
“Cyber insurance conversations don’t need to be highly technical. The brokers who do this well are usually the ones who can translate a complex subject into something relevant to the client’s day-to-day business.”
Read concludes by highlighting how Cybersecurity Awareness Month offers a valuable opportunity for both businesses and brokers to assess whether they are prepared for the risks ahead.
“Cyber is part of everyday business risk. The expectation on brokers has changed accordingly. Clients need confidence, clarity and practical guidance. Those who can provide that support will be in a strong position as demand for cyber advice continues to grow.”