UAE Council: Cyber Insurance Now Essential as Market Reaches $70 Million
UAE Cybersecurity Council says cyber insurance is essential as the market tops $70 million; firms urged to tailor and update policies amid rising premiums.
The UAE Cybersecurity Council for the government has affirmed that cyber insurance is no longer optional but a core risk-management tool for organisations operating in the Emirates. The council highlighted that the cyber insurance market in the UAE now stands at approximately $70 million and warned that premiums are likely to rise as threats intensify. Businesses were urged to ensure their cyber insurance is specifically tailored to their exposures and reviewed regularly to remain effective against evolving digital risks.
Council Declares Cyber Insurance a Necessity
The council framed cyber insurance as a fundamental line of defence against modern digital threats rather than a supplementary product. Officials stressed that insurance must sit alongside robust cyber hygiene, incident response planning, and ongoing threat monitoring. The message was directed at both public and private sector entities as the UAE accelerates digital transformation across finance, energy and public services.
UAE Market Valued at $70 Million
According to the council’s assessment, the UAE cyber insurance market has grown to an estimated $70 million in gross written premium. That figure reflects expanding demand for coverage that addresses ransomware, business interruption and third‑party liabilities tied to data breaches. Insurers and brokers in the market are adjusting capacity and underwriting criteria in response to this uptick in demand.
Large Corporations Lead Uptake
The council reported that roughly 75% of very large organisations — those with annual revenues above $5.5 billion — have already procured cyber insurance. Those enterprises are prioritising cover that includes incident response costs, regulatory fines where insurable, and losses from operational disruption. Smaller firms, however, continue to lag, creating a protection gap that the council warned could expose supply chains and critical infrastructure to cascading losses.
Policies Must Be Tailored and Updated
The council urged organisations to ensure that their cyber insurance policies are customised to the specific risks they face rather than relying on generic templates. Policies should be reassessed periodically and updated to reflect changes such as increased cloud migration, third‑party dependencies, and the introduction of new digital services. Insurers typically require detailed risk assessments and evidence of baseline security controls before offering meaningful coverage.
Insurers Expect Higher Premiums and Stricter Underwriting
Market participants in the UAE and globally are signalling that premiums will trend upward as claims frequency and severity continue to rise. Underwriting is becoming more granular, with carriers scrutinising an applicant’s security posture, patching regimes, multi‑factor authentication and backup strategies. The council noted that these underwriting shifts mean some organisations may face higher costs or coverage exclusions if they do not invest in cyber resilience.
Operational and Regulatory Impacts for Businesses
Beyond financial transfer, the council emphasised that cyber insurance should reinforce operational preparedness. Insurers often provide incident response support and access to forensics, legal and public relations services, which can reduce recovery time and reputational damage. The council also encouraged alignment between insurance placement and any sectoral regulatory obligations, so that policy limits and terms help address potential regulatory exposures.
Businesses considering cyber insurance should factor in deductibles, sublimits for specific perils, and the distinction between first‑party and third‑party cover. They should also confirm whether policies cover ransom payments, crisis management, and business interruption tied to system outages. Clear communication with brokers and insurers about the organisation’s architecture and dependencies will improve the likelihood of obtaining appropriate terms.
As the UAE continues to digitalise services and expand cloud and IoT deployments, the council warned that both the scale and complexity of cyber incidents will grow. It recommended that organisations treat cyber insurance as one element of a layered risk-management strategy that includes investment in prevention, detection and response capabilities.
Cyber insurance uptake and market behaviour will be closely watched by regulators, corporate boards and risk officers in the months ahead. The council’s guidance aims to push companies toward more disciplined risk assessment and coverage practices, while also prompting insurers to innovate products that match dynamic threat landscapes.
The council’s statement makes clear that in the UAE’s interconnected digital economy, cyber insurance has moved from a discretionary product to a necessary component of corporate resilience, with market growth and premium adjustments expected as threats evolve.
