By Martyn Janes, Lead Cyber Underwriter at rrelentless
As the economy continues to face turbulence, the UK and, in particular, small businesses must find new and creative ways to survive and flourish. For these companies, this means navigating financial uncertainty while contending with new challenges such as rising cyber threats and greater regulation on their operations. For business founders, there’s often no guiding light to help them navigate the mass of regulations and risks they face, which can seem overwhelming. For all their enthusiasm to build something new, they still rely on outside sources to help them and can be easily misled.
Amid these economic pressures, one vital tool for securing long-term growth is insurance. The right insurance strategy mitigates risk, enabling SMEs to innovate, expand and build resilience in the face of unpredictable business waters.
Addressing the Evolving Risks Facing SMEs
In today’s digital landscape, cyber risks are no longer hypothetical—they are inevitable and can be extremely damaging. A government report from 2024 revealed that half of businesses have experienced some form of cyber security breach or attack in the last 12 months. Based on recent reports, it is expected that the average cost to remedy an attack is £21,000. Together with reputational harm and legal ramifications, this is a serious threat that many small businesses are unprepared for.
Cyber insurance provides financial protection and access to expert legal and risk management support, enabling businesses to strengthen their defences and adopt a proactive security approach.
Beyond cyber threats, SMEs must also contend with supply chain disruptions, regulatory shifts and talent shortages. A robust insurance strategy provides a safeguard, allowing businesses to invest in their future with confidence. As risks continue to evolve, SMEs need adaptable insurance solutions that grow with their changing needs.
Harnessing Technology to Modernise Insurance
Many SMEs still view insurance as a simply regulatory obligation. However, advances in digital technology are reshaping the sector. Tech-driven insurance platforms simplify policy management, speed up claims processing and provide real-time insights into potential risks.
AI tools are making insurance more accessible than ever, as they drive down costs by reducing manual or time-intensive labour for insurers. New low-fee or flat-fee models are entering the industry that are far more palatable to small business owners. These tools make insurance budgeting much easier, so owners can prepare for the worst and plan for the best without fears of hidden fees springing up.
The gap between insurers and businesses is shrinking too. Tools like ChatGPT allow customers to understand policies they need more easily, while insurers work with new technologies to simplify their language, remove jargon and create an easier-to-access product.
Using Insurance as a Growth Catalyst
Insurance isn’t just about protecting against loss—it can also serve as a springboard for growth. The right policies allow businesses to take calculated risks and expand into new markets with confidence.
For example, business interruption insurance ensures continuity in the face of unexpected disruptions, allowing SMEs to recover quickly and maintain operations. Similarly, professional indemnity and liability coverage enhance a company’s credibility, reassuring potential clients and partners that the business is well-prepared to handle risks—an essential factor when bidding for high-value contracts.
Additionally, key person insurance helps SMEs safeguard their future by providing financial stability in the event of losing a critical team member. This type of coverage enables businesses to invest in leadership development and succession planning without fearing sudden operational setbacks.
By proactively using insurance to manage uncertainties, SMEs can create a strong foundation for growth and ensure their continued competitiveness in an ever-changing marketplace.
An Evolving Insurance Market
A robust insurance market is vital for SME success and, by extension, the UK economy. Achieving the right balance is key. Rules designed for consumer protection should not unfairly burden insurers, as excessive compliance requirements could hinder their ability to support SMEs effectively.
The commercial insurance sector is built on expertise, and professionals should be empowered to serve businesses without unnecessary restrictions. A well-functioning market ensures small businesses have access to tailored insurance solutions that meet their unique needs.
They need robust protection against risks that could jeopardise their hard-earned progress. Insurance is more than a financial buffer; it is a strategic asset that empowers businesses to navigate uncertainty with confidence.
Martyn Janes is an experienced cyber insurance expert with a career spanning over a decade. Since beginning his journey at Towergate Underwriting in 2011, he has honed his expertise in technology, cyber, and life science underwriting through roles at Hiscox and CNA Hardy.
Now as Lead Cyber Underwriter at rrelentless, Martyn drives growth, shapes strategy, and delivers tailored cyber insurance solutions to protect businesses against evolving threats.
Passionate about education and risk management, he frequently shares insights on cyber trends through podcasts, panels, and industry events, empowering brokers and businesses to navigate the complex cyber landscape.