Cyber risk remains a defining feature of the global risk landscape in 2026, driven by its close links to geopolitical developments and rapid technological change. In the UK, the latest Cyber Security Breaches Survey (opens a new window) found that 43% of businesses identified a cyber security breach or attack in the previous 12 months, equivalent to approximately 612,000 organisations nationwide. The findings reinforce the extent to which cyber incidents have become a routine business risk rather than an exceptional event, despite continued improvements in cyber security controls and awareness.
Despite this increasingly volatile risk environment, market conditions remain favourable for insureds, with rate reductions continuing into the second half of 2026. Lloyd’s Q2 2026 Market (opens a new window) assessment classified cyber insurance adequacy as ‘marginal’, highlighting continued pressure on and a ‘rapid weakening’ of rate margins. There are, however, indications that the decline in cyber rates may be starting to slow, following over three years of consistent reductions.
