Nearly three quarters of mid-market firms in the UK have experienced a cyber incident in the past five years, according to new research, which also highlights a significant retreat from standalone cyber cover.

More than a third of the businesses polled by insurer Coalition that previously held standalone cover no longer do, with many assuming their wider commercial policies provide sufficient protection.

Tom Draper, Coalition’s UK managing director, said the research shows that many mid-market businesses shifted their insurance priorities away from cyber insurance cover during the hard cyber market, and have not returned since.

“This year, it’s been difficult to avoid seeing the consequences of a cyber attack, with big brands and high-profile organisations hit with disrupted operations and large recovery bills,” he continued. “Our survey shows that these events are now spurring decision makers into action, with 30% saying it has encouraged them to review their cyber insurance or request standalone cyber insurance quotes.”

The survey highlighted increasing engagement with cyber risk, with 38% reporting greater vigilance and 37% saying they now recognise the importance of cyber insurance. However, 35% still believe the risk does not justify the cost of cover, and 33% think they are unlikely to be targeted, despite respondents estimating the average cost of an incident at around £200,000.

Businesses also reported taking more steps to prepare. Nearly two fifths said they feel secure because they have an incident response plan, 36% have increased their cyber security budgets, and 35% have reconsidered how much insurance cover they need.

The study was conducted in September 2025 amongst 600 senior insurance decision-makers at mid-market firms across England, Scotland and Wales.

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