Cyber threats are more than just a technical issue in the modern world. The economy is now what could be called a ‘digital first economy’, meaning that cyber threats pose a serious business risk. For companies operating in the UAE and across the MENA region, the rise in ransomware, data breaches, and system outages makes cyber insurance a critical part of every organisation’s risk management framework. Last year’s global IT outage caused by a faulty software update from CrowdStrike disrupted businesses worldwide, resulting in over 5 billion dollars in losses. Shockingly, this was only a portion of that was insured. This event served as a wake-up call for businesses in the region to re-evaluate their cyber resilience and consider what protection is really in place.
What Is Cyber Insurance and Why Do You Need It?
Cyber insurance is more than just a financial safety net. It’s an essential tool for managing cyber risks, safeguarding sensitive data, and ensuring business continuity in the event of a cyber incident.
A strong cyber insurance policy typically covers three key things:
Incident Response Services.
When a breach occurs, speed is everything. Cyber insurance provides access to digital forensic experts, breach notification support, and data restoration services – ensuring you’re not facing a crisis alone.
First-Party Losses.
This includes business interruption, loss of income, and any regulatory fines related to data protection breaches. With increased scrutiny under the UAE’s Personal Data Protection Law (PDPL), the financial exposure can be substantial.
Third-Party Claims.
Should your clients, partners, or regulators take legal action due to a data breach, your policy can cover the legal defence costs and any resulting settlements or damages.
Want to know what coverage is right for you? Talk to our cyber insurance specialists.
Cyber Risk Management.
‘Imagine your entire IT infrastructure is compromised: your website crashes, transactions can’t be processed, client appointments are missed, and internal systems are inaccessible’ says Ian Featherstone, Managing Director at IAE Insure. ‘Whether you’re running an e-commerce platform, a law firm, or a healthcare provider, a cyberattack can instantly halt operations. That’s why proactive planning and the right cyber insurance strategy are essential to business continuity.’ This scenario is all too real for many organisations. Building cyber resilience means preparing now, not reacting later. A good cyber risk strategy begins by identifying your mission-critical systems and data and understanding the threats that could impact them.
Then comes the hard part: building out the right mix of people, processes, and technology to defend, detect, and respond to attacks. ‘One top tip’ continues Ian ‘is to run regular incident response simulations with your leadership, IT, and communications teams to test your readiness under pressure.’
Complying with the UAE’s Personal Data Protection Law (PDPL).
With the PDPL now in effect, UAE organisations must meet stricter requirements for data processing, storage, and breach notification – much like the EU’s GDPR. Peter Ellingham, Partner at global law firm Kennedys, explains that ‘the PDPL has brought compliance into the boardroom. Companies need a robust incident response plan, not just to minimise business disruption, but also to meet regulatory deadlines and avoid penalties.’
What UAE Insurers Are Seeing on the Ground.
Recent analysis shows that cyber claims in the UAE and MENA region are on the rise, especially in the following areas:
- Ransomware attacks and data encryption
- Phishing scams and Business Email Compromise (BEC)
- Denial-of-Service (DoS) attacks leading to downtime
- Financial losses from identity theft and fraudulent transfers
- Reputational damage from public data breaches
These risks have prompted more businesses across the region to seek tailored cyber insurance coverage as IAE Insure works closely with the leading insurance underwriters to provide the correct levels of cover for businesses.
To get the most from your cyber insurance policy, it will be important to make sure you:
- Conduct a full cyber risk assessment
- Align internal processes with your insurer’s incident response plan
- Understand policy exclusions (fraudulent transactions, for example, may require a crime policy)
- Review your coverage limits and regulatory compliance
- Train staff and run tabletop exercises
Expert insurance brokers like IAE Insure can help to assess your cyber risk exposure.
Cyber Insurance Is a Business Essential in 2025.
With digital threats becoming more sophisticated and frequent, cyber insurance in the UAE is not just good governance – it’s a necessity. By partnering with insurers, legal experts, and IT specialists, your business gains access to a trusted crisis response team and the financial backing to recover swiftly from attacks. At IAE Insure, we specialise in helping UAE businesses find comprehensive, cost-effective cyber insurance solutions that are tailored to their operations, regulatory environment, and risk appetite.
Contact IAE Insure today to find out how you can insure against digital disruption.
