Cyber insurance gap leaves UK property businesses dangerously exposed: GlobalData

UK property businesses remain underinsured against cyber threats, despite a surge in attacks, according to GlobalData's Q1 2025 UK SME Insurance Survey. The survey revealed that cyber insurance coverage remains below the average for small and medium-sized enterprises (SMEs) across all business sizes. Penetration stands at 7.7% for sole traders, 15.8% for micro businesses, 20.5% for small businesses, and 55.0% for medium-sized businesses.

This is significantly lower than the 13.1%, 26.4%, 40.1%, and 63.0% penetration rates, respectively, in the broader SME market.

The increase in cyberattacks against UK property services companies, which rose from 178 incidents in 2024 to 208 in 2025, highlights the growing financial risks faced by property businesses. These businesses handle sensitive customer data, including bank details, mortgage information, tenancy records, proof of address, passports, and driving licenses, making them attractive targets for cybercriminals.

A breach can result in both the loss of personal information and financial ramifications, such as criminals redirecting payments by replacing legitimate bank details during transactions.

Charlie Hutcherson, Senior Insurance Analyst at GlobalData, emphasized the growing dependence of property businesses on digital systems and the associated cyber risks. These risks extend beyond data breaches to include fraud, business interruption, and potentially significant recovery costs. However, cyber insurance uptake has not kept pace with this exposure, particularly among smaller businesses.

Hutcherson noted that insurers have an opportunity to address this gap by improving awareness and making coverage more accessible. Smaller firms may not fully understand the potential financial impact of a cyber incident until it occurs, making it crucial for brokers and insurers to demonstrate the value of insurance alongside cybersecurity measures.

As property transactions and customer interactions become increasingly digital, the cyber exposure within the sector is expected to grow. This trend, combined with low insurance penetration, could lead to more businesses absorbing cyber losses independently. Hutcherson concluded that insurers that can enhance awareness, simplify distribution, and demonstrate the practical value of cyber insurance stand to increase penetration within an underserved segment of the SME market.