Less than one in five SMEs hold standalone cyber policy cover

• To close the protection gap, GlobalData urged insurers to pair more accessible products with continuous risk monitoring and the promotion of good digital practices.

Cyberattacks are intensifying against small and medium-sized enterprises (SMEs) even as insurance uptake lags, leaving many firms financially exposed, according to GlobalData’s 2025 SME Survey.

GlobalData found 34.7 per cent of SMEs globally suffered a cyber incident in the past three years. In Europe, German SMEs were most affected, with 40.3 per cent reporting incidents.

Despite rising risk, only 16.8 per cent of SMEs hold a standalone cyber policy, suggesting underinsurance even where some cover may be bundled within broader policies.

“Low cyber insurance rates among SMEs suggest that many smaller businesses are still overlooking cover—possibly because they do not understand the value of such policies,” said Beatriz Benito, Lead Insurance Analyst at GlobalData.

She added that SMEs typically lack enterprise-grade defenses, making them attractive targets, and that a significant breach can trigger immediate insolvency without insurance.

GlobalData said high baseline premiums reflect evolving risks and limited loss data, pricing many smaller firms out of cover. To close the protection gap, the firm urged insurers to pair more accessible products with continuous risk monitoring and the promotion of good digital practices.