Estimated reading time: 4 minutes
Ransomware crews can cripple a firm in minutes. They can freeze files, block payments, and stop customer service. Digital Minister Liz Lloyd delivered that warning to insurance brokers at BIBA’s manifesto launch. Lloyd set the tone early, saying, “Cyber security is not optional.” She added, “It is foundational to our national security, our economy, and our way of life.” She spoke at the Houses of Parliament on 14 January 2026. This article summarises her remarks on cybersecurity and cyber insurance.
Cyber Law And Plan Move Through Westminster
Lloyd said government has taken “decisive action” on resilience. She stressed urgency, stating, “Resilience is not a luxury.” She added, “It is the foundation of national security, economic stability, and long-term growth.”
Lloyd pointed to the Cyber Security and Resilience Bill. The Bill had its second reading last week. Lloyd said it will cover more essential and digital services. She said it will strengthen incident reporting. She said it will help regulators and the government respond faster.
She also highlighted the Government Cyber Action Plan. Lloyd said it is backed by “an investment of £210 billion pounds.” She said it aims to improve defences across government and the public sector.
Boards Get A Clearer Playbook
Lloyd urged boards to treat cyber risk as a leadership issue. She promoted the Cyber Governance Code of Practice. Lloyd described it as “clear, practical steps.” She said it helps firms “guard against, and respond to, cyber-attacks.”
She also pushed Cyber Essentials as a baseline. Lloyd made an insurance link that brokers will remember. She said, “Certified organisations are 92% less likely to make a claim on their cyber insurance.”
Prevention Plus Recovery Shapes Cyber Insurance
Lloyd said prevention alone will not carry UK businesses. She said recovery speed protects customers and jobs. She put a human face on the damage. Lloyd said, “A cyber incident isn’t just a statistic.” She added, “It’s people, livelihoods and community services at risk.”
She referenced a recent ministerial letter to leading UK companies. The letter urged board-level ownership of cyber risk. It urged signing up for the NCSC Early Warning Service. It urged Cyber Essentials across supply chains. Lloyd also stressed the importance of rehearsals for continuity and recovery.
She summed up the approach in one line. She said, “Resilience is not just about defence, but about readiness to respond and rebuild.”
Get The Cyber Insurance News Upload Delivered
Subscribe to our newsletter!
Market Data Signals Momentum
Lloyd called cyber coverage “an important part of the toolbox.” She said it supports standards when paired with strong controls. Lloyd framed cyber liability insurance as a way to manage financial shock and as a driver of better practice.
She cited the estimated cost of cyber attacks to UK businesses putting the figure at “over £14 billion.” She said insurance reduces the fallout by speeding recovery.
Lloyd noted a 17% rise in UK cyber insurance policies in 2024. Payouts to support recovery reached £197 million. She pointed to new products like CFC’s Customer Business Interruption cover, which addresses supply chain impacts.
Brokers And SMEs Remain The Pressure Point
Lloyd highlighted brokers’ central role in coverage uptake and SME engagement. She said cost, complexity, and lack of awareness hinder SME adoption.
Lloyd said only 8% of SMEs viewed insurer or broker information as “very clear.” She noted 76% of insured SMEs got advice from a broker. She said DSIT and BIBA are addressing broker expertise with the Cyber Insurance Industry Working Group.
A Closing Warning For UK Business
Lloyd closed with urgency. She said: “Let me be clear: cyber resilience is not optional.” She added: “It is the bedrock of our national security, our economic stability, and our future growth.”
Related Cyber Liability Insurance Posts
- Small Businesses Must Prepare To Defend – And Insure – Against Cyberattacks
- Cyber Insurance Pure-Play Resilience Creates Captive — “Putting Its Money Where Its Mouth Is”
- Insurers & Lawyers for Policy-Holders Alert for “Silent” Cyber Coverage
- With IT Supply Chain Now Key Focus of Cyber Insurance, Startup Sells Coverage for Cloud Outages
- What’s an “Act of War?” More Lessons from Merck’s $1.4 billion Cyber Insurance Lawsuit (Note Russia/Ukraine connection)
- Watch Out for SPoF Attacks in 2022, Warns CyberCube in New Report
