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Pen Underwriting has doubled its UK SME cyber cover limit to £10 million. The new ceiling applies to companies with revenues up to £600 million. It takes effect for risks incepting on or after 1 July 2026. The MGA also confirmed it will handle all UK cyber claims in-house.
The London-based MGA cited rising broker demand for higher limits. That demand is strongest among clients at the top of its non-corporate revenue band.
Higher Limits Meet Broker Demand
The £10 million limit matches the primary cover Pen offers large corporates. We covered that proposition when Pen relaunched its corporate cyber offering in October 2024.
“Cyber risk never stands still, so we won’t either,” said Ian Summerfield, Managing Director of Cyber at Pen Underwriting. He added that as threats and buyer behaviours shift, “it’s essential we continue to listen to broker feedback and evolve our offering.”
Lower Barriers for Smaller Firms
The package is not only about bigger limits. Pen has cut excess levels for smaller companies by more than half in certain revenue bands. Rates have come down at the lower end of its appetite. Question sets have been streamlined and made “smarter” to match shifting exposures.
These moves target affordability. They echo a wider UK market push to close the SME protection gap. Brit, Acturis, Mulberri, and Omnyy have made similar plays to simplify SME distribution. Government data shows why. The Cyber Security Longitudinal Survey found uneven insurance uptake among UK firms. A separate government report detailed the economic damage cyberattacks inflict on UK businesses.
A Bigger Incident Response Tower
Pen is quadrupling its separate incident response tower. The maximum rises from £250,000 to £1 million per incident. That cover sits outside the main policy limit. The structure preserves the full indemnity limit while breach response experts work.
Crime sub-limits are also rising. Losses from phishing, corporate identity theft, and services fraud move to £100,000 or £250,000. The applicable figure depends on the overall cover limit. Pen says consistent sub-limits will make broker cover comparison easier.
Cyber Insurance Claims Move In-House
Pen has invested in bringing all UK cyber claims handling in-house. The MGA says this creates one customer journey from underwriting through to claims resolution. It also unifies data ownership. Pen expects that to sharpen product feedback loops and speed up payments.
The move fits a pattern. Last September, we reported on six enhancements to Pen’s SME cyber cover. Those changes eased extortion payment burdens and extended restoration periods. The firm made more than 20 enhancements in 2024.
UK SMEs remain under pressure. More than 600,000 UK businesses reported a breach or attack in a single year. Lawmakers are responding too, with the Cyber Security and Resilience Bill moving through Parliament.
FAQ – SME Cyber Cover Limit
£10 million, double the previous limit. It applies to companies with revenues up to £600 million, for risks incepting on or after 1 July 2026.
Excess levels fall by more than half in certain revenue bands. Rates drop at the lower revenue end. Question sets are simpler and more relevant.
Up to £1 million per incident, up from £250,000. The cover sits outside the main policy limit.
To unify the customer journey, own its claims data, refine products faster, and speed up payments.