UAE cyber insurance market reaches $70 million amid rising digital threats

Abu Dhabi: The UAE Cybersecurity Council has highlighted the growing importance of cyber insurance amid accelerating digital transformation and the increasing sophistication of cyber threats targeting individuals and organisations alike.

The UAE cyber insurance market is estimated at around US$70 million, according to the Cybersecurity Council, reflecting rising awareness of the importance of digital risk protection as reliance on technology-driven solutions expands across sectors, according to Emirates News Agency (WAM) .

The Council explained that cyber insurance has emerged as a key tool for mitigating the financial and operational impact of cyber incidents, including system breaches, data leaks and disruptions to digital services. 

Coverage typically includes incident investigation costs, data recovery, legal liabilities and compensation claims, enabling organisations to recover more quickly and reduce financial losses.

The Council expected cyber insurance premiums to increase significantly over the coming years due to the growing scale and complexity of cyber threats, particularly as attacks increasingly involve advanced technologies such as artificial intelligence and social engineering techniques.

It noted that around 80 percent of institutions and companies in the UAE now recognise cyber insurance as an essential component of risk management strategies. 

However, the Council stressed that cyber insurance should complement, rather than replace, core cybersecurity measures within a comprehensive protection framework.

The Council underscored the importance of cyber insurance in critical sectors including financial services, healthcare and energy, where cyberattacks could disrupt essential services or expose sensitive data, resulting in both financial and reputational damage.

It also noted that cyber insurance supports compliance with regulatory standards, as many insurers require organisations to implement minimum cybersecurity controls before granting coverage. This encourages institutions to strengthen their cybersecurity readiness and adopt international best practices.

The Council further said the future is expected to witness greater integration between insurance providers and cybersecurity companies through solutions combining prevention, insurance coverage and incident response services. It added that data analytics will play an increasing role in assessing risks and pricing policies according to the specific needs of organisations.

The Council emphasised that effective cybersecurity today extends beyond technical protection tools to include the ability to respond rapidly and minimise damage in the event of cyberattacks, supporting business continuity and strengthening confidence in the digital environment.