Cyber Insurance Wake-Up Call: UK Retail Attacks Could Push Up US (and Aussie) Premiums
What do ransomware attacks in the UK have to do with your cyber insurance bill in Australia?
Possibly, a lot.
In the past few months, several big-name UK retailers — including Marks & Spencer, Harrods, and the Co-Op Group — have found themselves in the crosshairs of sophisticated cyberattacks. While Harrods reportedly stopped an incident in its tracks, others weren’t so lucky. Marks & Spencer is staring down a $400 million bill for breach response and recovery.
These aren’t isolated hits. According to Google’s Threat Intelligence Group, these attacks are connected to broader campaigns also targeting US-based retailers — and possibly Australian businesses next.
Here’s where it gets real: Insurance providers are watching closely.
📈 Insurance Premiums Could Rise - Even If You Haven’t Been Hit Yet
For now, cyber insurance premiums have started to stabilise after sharp hikes during the pandemic years. But experts like Monica Shokrai (Google Cloud) say the math is about to catch up.
“It’s just how the math works out. We’re watching it really closely.”
— Monica Shokrai, Head of Business Risk and Insurance, Google Cloud
Translation? As attack frequency and severity go up, expect insurers to reassess their pricing — especially for organisations that haven’t kept up with controls or visibility.
🔍 Risk Management Will Matter More Than Ever
We’re not just talking about premium hikes. There’s a broader shift coming:
✅ More detailed risk assessments
✅ Tighter requirements around cyber hygiene
✅ More scrutiny on third-party risk (especially for retail, logistics, and payment platforms)
✅ Expectations to follow recognised frameworks — like the Essential Eight in Australia
And yes, all of this applies to SMBs too.
As Dr. Ann Irvine of Resilience puts it:
"Cyber insurance is part of a bigger cyber-risk assessment. It’s not a standalone safety net."
👀 What About SMBs?
You don’t need to be a retail giant to feel the pressure. Data shows that 3 in 4 UK businesses hit by ransomware this year had fewer than 200 employees. Even microbusinesses aren’t being spared.
“More businesses with fewer than 10 employees have been impacted than those with over 10,000.”
— Shawn Ram, Chief Revenue Officer, Coalition
That’s the insurance risk pool — and you’re already in it.
🧠 The Bottom Line: What Should Aussie Businesses Do?
Here’s the shift that’s coming:
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Premiums will get smarter — and stricter.
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Risk visibility will be essential — especially around vendors, remote systems, and cloud access.
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Framework alignment will become table stakes — think Essential Eight, NIST, and more.
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Pen testing, MFA, endpoint protection, and phishing training will no longer be “nice to have.”
Cyber insurance isn’t just a checkbox. It’s a reflection of your security maturity — and like any market, it rewards preparation.
Want to Be Ready?
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Conduct a baseline cybersecurity assessment
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Review your Essential Eight maturity
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Run a third-party risk review
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Ask your broker about premium impacts of improved controls
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Consider a penetration test to surface your blind spots before an insurer does
Let’s not wait until the rates jump.
🛡️ Your security posture will shape your premiums.
💬 Got a question about cyber risk or insurance readiness? Drop it in the comments.
🔁 Share this post with anyone who still thinks “we’re too small to matter.”
Let’s keep small businesses secure — and insurable.
— Ateeq Sheikh | TheCyberGuyAU
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