Category: 3. Business

China’s hydrogen industry is poised for major growth as the country intensifies the development of infrastructure and promotes end-use applications as a low-carbon fuel. In its current form, however, the industry is still heavily reliant on fossil fuels, and the green hydrogen segment is still in its infancy. These realities present both exciting opportunities for early investments and intrinsic early-mover risks, as infrastructure and value chains remain immature and future demand growth is uncertain. Foreign investors can seek to capitalize on the country’s bet on the emerging fuel source by selecting strategic and limited entry points and exploring the scope of possibilities.

China is doubling down on its bet on hydrogen as a potentially revolutionary clean energy source. Viewed as a means of diversifying the country’s energy mix and bolstering energy security, the clean-burning fuel may also prove key to decarbonizing hard-to-abate sectors such as transportation, steel, and chemicals. But as in the rest of the world, current production and utilization of hydrogen remain closely tied to the petrochemicals and coal industries. Most hydrogen is currently produced from fossil fuels, and its use is still concentrated in refinery, petrochemicals, and other energy-intensive industrial processes. 

China’s green hydrogen industry is still in its infancy, both in terms of large-scale production and diversified end-use applications. Due to its significant potential as a low-carbon energy source, the sector nonetheless enjoys strong government attention and support. It has been outlined as one of six “future industries” (along with nuclear fusion energy) of focus for the 15th Five-Year Plan period (2026 to 2030). This creates meaningful potential for future technological development, expanded adoption, and access to government incentives as the sector grows. 

Against this backdrop, opportunities for foreign investment emerge across multiple segments of the hydrogen value chain. Potential entry points range from production technologies and equipment to storage and transport solutions, to downstream applications in transportation, industrial heating, and chemical processing. These openings reflect both the scale of China’s future hydrogen ambitions and the ongoing need for advanced technologies, high-quality equipment, and operational expertise as the industry evolves.

Overview of China’s hydrogen industry 

Hydrogen production 

China is the world’s leading producer of hydrogen. In 2024, total hydrogen output grew 3.5 percent year-on-year to 36.5 million metric tons, according to the National Energy Administration (NEA), accounting for over a third of global production.

As is the case worldwide, China’s hydrogen production is primarily based on the coal and petrochemical industries. The majority of hydrogen in China is the so-called “black” or “brown” hydrogen, which comes from coal, a high-emitting source most commonly produced through the process of gasification. According to the NEA, around 56 percent of China’s total hydrogen production came from coal and 21 percent from natural gas. A further 21 percent was produced as an industry by-product (usually from the petrochemical industry). Only around 1 percent was produced through electrolysis, the process of using electricity to split water into oxygen and hydrogen, which, if produced using renewable energy sources, is the cleanest form of hydrogen. 

This proportion aligns with global production trends. According to the International Energy Agency (IEA), less than 1 percent of global hydrogen production in 2024 came from low-emissions sources. 

Hydrogen production in China is primarily concentrated in the north and northwest, with the provinces of Shandong, Inner Mongolia, Shaanxi, Ningxia, and Shanxi together accounting for 45 percent of total output in 2024. 

Hydrogen utilization 

According to NEA data, in 2024, over half of China’s hydrogen – a combined 53 percent – was used in the methanol and ammonia synthesis industries, while the refinery industry consumed 16 percent and the coal chemical industry 11 percent. The remaining 20 percent was utilized in industries such as transportation, heating, and metallurgy. 

As with production, hydrogen consumption is mainly concentrated in traditional heavy industrial provinces such as Shandong, Inner Mongolia, Shaanxi, Ningxia, and Shanxi. 

Green hydrogen projects 

While green hydrogen accounts for just a small proportion of China’s overall hydrogen production, the country is expanding output capacity, in particular in areas with rich renewable energy resources. 

According to the NEA, there were over 600 planned renewable energy hydrogen electrolysis projects at the end of 2024, of which 94 had been completed, and a further 83 were under construction. The current output of the completed green hydrogen projects at the end of 2024 was 125,000 tonnes per year. Northern and northwestern China account for around 45 percent and 44 percent of this capacity, respectively, driven by these regions’ strong traditional industrial bases and rich renewable resources.

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2024 alone saw the completion of 35 new green hydrogen products with a combined output capacity of 48,000 tonnes per year. This was an increase of 62 percent in newly added capacity from the previous year. The main downstream uses of this green hydrogen were transport, oil refinery, and ammonia and methanol synthesis, as well as metallurgy, heating, power generation, energy storage, and scientific research. 

China’s total green hydrogen capacity may see yet another increase in 2025, with the government actively funding a number of green hydrogen demonstration projects. In April 2025, the National Development and Reform Commission (NDRC) included nine green hydrogen projects in a list of advanced green and low-carbon technology demonstration projects, which will receive government investment. The projects, which cover the production, storage, and transmission of green hydrogen, among other processes, are primarily located in Inner Mongolia, Ningxia, Jiangsu, Tianjin, and Xinjiang. 

According to a recent report from the Centre for Research on Energy and Clean Air (CREA), the combined capacity of the electrolyzers of these nine projects is 5.9GW  – seven times the capacity of the green hydrogen projects included on the 2024 list. 

Transportation and fuel cell vehicles 

As in the rest of the world, China’s hydrogen fuel cell vehicle (FCV) industry is still in its infancy. According to data from the China Association of Automobile Manufacturers (CAAM) cited by the media, between 2015 and 2024, a total of 24,042 FCVs had been produced in China and 23,501 sold. In 2024, only 5,548 FCVs were manufactured, a year-on-year decline of 10.4 percent. FCV sales were similarly low, with just 5,405 sold, falling 12.6 percent from 2023. 

The industry appears to have fared no better in 2025; CAAM data shows that in the first six months of the year, only 1,364 hydrogen FCVs were produced, a drop of 47.2 percent year-on-year, and only 1,373 were sold, down 46.8 percent year-on-year.  

As the data shows, the industry has not taken off as quickly as hoped. A key hydrogen development plan released by the National Development and Reform Commission (NDRC) in 2022 targeted for China to have a fleet of around 50,000 hydrogen FCVs by 2025 – a figure it appears unlikely to reach. The slow uptake is due in part to the limited production and supportive infrastructure, such as refueling stations, which hamper widespread production and adoption. According to the NEA, there were around 540 hydrogen refueling stations at the end of 2024. 

The NEA nonetheless notes key technological breakthroughs in the deployment of hydrogen and hydrogen-derived fuels for transport in recent years. These include a long-haul hydrogen-powered logistics trial on the Beijing–Shanghai expressway, the rollout of a 2,400-kW hydrogen-powered train, and the first flight of a prototype light hydrogen-combustion aircraft. Progress has also extended to maritime applications, with the methanol-fueled vessel Guoneng Yangtze 01 entering commercial operations, a 5,500-horsepower ammonia-fueled tugboat completing marine ammonia bunkering, and a large methanol-powered container ship carrying out ship-to-ship refueling.  

Policy landscape 

In 2022, the NDRC released the Medium- and Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035) (the “2021 to 2030 Development Plan), which sets targets and provides policy guidance for the industry’s development.

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This plan called hydrogen energy “an important component of the future national energy system” and a “crucial conveyor for achieving the green and low-carbon transition in energy end uses”, underscoring how the government views the technology as an important tool for both national energy security and decarbonization. 

Over the past few years, the Chinese government has elevated the hydrogen industry as one of the “future industries” with significant potential for expansion and application. The 14th Five-Year Plan (the national development plan for the period from 2021 to 2025) called for the government to “organize and implement future industry incubation and acceleration programs, and plan and deploy a number of future industries”, which included hydrogen energy and energy storage. 

The sector was also mentioned in the proposals for the 15th Five-Year Plan, released at the end of October 2025, which acts as the blueprint for the finalized plan, which will be implemented in 2026. It specifically calls for “proactively planning for future industries, exploring a variety of technological routes, typical application scenarios, feasible business models, and market regulatory rules to promote […] hydrogen energy”, among other emerging sectors, and to “innovate regulatory methods, develop venture capital, and establish mechanisms for increasing investment and sharing risks in [these] future industries”. 

Key development targets 

The 2021 to 2030 Development Plan sets a series of five-, 10-, and 15-year goals for the development of hydrogen production and adoption. However, it only sets numerical targets for 2025, namely:

• Have a fleet of around 50,000 fuel cell vehicles in operation and deploy and construct “a batch” of hydrogen refueling stations. 
• Increase renewable energy hydrogen production to 100,000 to 200,000 tonnes/year, reducing carbon dioxide emissions by 1 to 2 million tonnes/year. 

By 2030, China will strive to have formed “a relatively complete hydrogen energy industry technology innovation system and clean energy hydrogen production and supply system, with a rational and orderly industrial layout. Renewable energy hydrogen production will be widely applied, strongly supporting the achievement of the [2030] carbon peak target”. 

By 2035, “a hydrogen energy industry system will be formed”, supporting a diversified hydrogen energy application ecosystem that covers transportation, energy storage, and industry. Additionally, the proportion of hydrogen from renewable energy sources in final energy consumption will have “increased significantly” and will play “an important supporting role in the green transformation and development of energy”. 

Development and adoption of green hydrogen 

At the end of 2024, the Ministry of Industry and Information Technology (MIIT) released the Implementation Plan for Accelerating the Application of Clean and Low-Carbon Hydrogen in Industrial Sectors (the “Green Hydrogen Implementation Plan”), which builds on the 2021 to 2030 Development Plan to set more granular targets and policy outlines for the production and utilization of green hydrogen. 

The Green Hydrogen Implementation Plan’s core aim is to achieve significant progress in “supporting equipment and promoting technologies for clean and low-carbon hydrogen applications in the industrial sector” by the year 2027. It highlights key industries for application, including metallurgy, synthetic ammonia, synthetic methanol, and oil refinery. It also calls for deploying demonstration applications in fields such as industrial green microgrids, shipping, aviation, and rail transportation, and to create commercial application models for hydrogen energy in transportation, power generation, and energy storage.  

Opportunities for foreign investors in China’s hydrogen industry

For foreign investors, China’s hydrogen sector offers a combination of challenges and opportunities. While it is a nascent industry with considerable room for growth, many viable applications and benefits of the technology have already been proven across multiple fields. The sector also has strong policy backing and an expectation of rising demand as technologies mature and costs decline. At the same time, early movers face clear risks, from underdeveloped infrastructure and evolving standards to potential setbacks associated with the commercialization of emerging technologies.  

Despite these challenges, the outlook of China’s hydrogen industry is compelling, and the Chinese government continues to spotlight a number of hydrogen-related segments as priority areas for development. Additionally, the 2022 edition of the Catalogue of Encouraged Industries for Foreign Investment (the “2022 FI Encouraged Catalogue”) includes several fields related to hydrogen energy, including FCVs, equipment manufacturing, and technology R&D. 

Equipment manufacturing and technology development 

Equipment manufacturing remains a strong area of opportunity for foreign investors, particularly as China works to build out the full hydrogen value chain. The 2022 FI Encouraged Catalogue includes green hydrogen production technologies, such as hydrogen from chemical by-products, biological hydrogen production, and renewable-energy-based electrolysis, as well as hydrogen storage, transportation, and liquefaction. This reflects broad openness to foreign firms engaged in the core technologies required to produce and handle hydrogen at scale. 

Foreign companies with advanced manufacturing expertise and proprietary technologies can find demand across multiple equipment categories. These include electrolyzers, membrane and catalyst materials, compressors, high-pressure storage systems, liquid hydrogen equipment, and purification and transport systems. 

In addition, opportunities exist in upstream technology development. As China seeks to expand green hydrogen production and improve the performance of production and storage systems, companies offering innovations in electrolysis efficiency, materials science, and modular system design are well-positioned to collaborate with local partners or establish localized manufacturing. For foreign investors, this segment offers a pathway to participate in China’s emerging hydrogen ecosystem while contributing high-value technologies and capabilities. 

Hydrogen FCVs 

One tangible opportunity for foreign investors in the hydrogen industry is the development of hydrogen FCVs. Although the industry has faced setbacks in recent years, continuous policy support means there is still a strong possibility for the market’s future growth. 

China has identified hydrogen-powered transportation as a strategic growth area, offering both policy support and a clear roadmap for industry development. The 2022 FI Encouraged Catalogue explicitly includes several activities related to FCVs. These include the design and R&D of hydrogen fuel cell power systems, the construction and operation of hydrogen refueling stations, and the development, manufacturing, and operation of new energy storage equipment, including hydrogen storage.

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Policy directives outlined in the Green Hydrogen Implementation Plan further reinforce these opportunities. The plan emphasizes technological innovation in fuel cells and hydrogen storage, encouraging the development of high-power, efficient, and long-life fuel cells, high-efficiency hydrogen or ammonia internal combustion engines, and high-pressure, high-density onboard hydrogen storage systems.  

Demonstration projects are also being encouraged to integrate renewable hydrogen and high-quality industrial by-product hydrogen, supporting distributed hydrogen production and refueling stations. Simultaneously, the scale-up of FCV use in industrial clusters, such as industrial parks, logistics hubs, ports, and mines, is a priority, creating opportunities for foreign companies to supply vehicles, refueling infrastructure, fleet management systems, and operational expertise. The government also supports the creation of “district-to-district” hydrogen energy logistics corridors and city clusters for fuel cell vehicle demonstrations, while initiatives such as “Hydrogen for All” promote applications across highways, ports, industrial zones, and commercial equipment, further opening avenues for technology deployment and commercialization. 

Investors should nonetheless be aware of the risks associated with entering an immature industry. China’s hydrogen FCV industry has stagnated, despite government support for pilot projects. The sector continues to suffer from high costs for fuel cells and refueling stations, the limited number and inconvenient locations of refueling stations, and the high price of hydrogen due to limited supply.  

For this reason, foreign investors should approach the market with caution, prioritizing cost reduction strategies, such as utilizing lower-cost black or brown hydrogen in the short term and focusing initially on applications that may be easier to commercialize, such as trucks and freight transport, rather than passenger vehicles. Investors may also look at the construction and operation of hydrogen fueling stations, as well as R&D and manufacturing of hydrogen FCV components such as hydrogen circulation pumps, hydrogen ejectors, 70MPa hydrogen cylinders, and vehicle-mounted hydrogen concentration sensors, all of which are listed in the 2022 FI Encouraged Catalog. 

At the same time, policy incentives will remain critical to industry growth, making it essential for investors to closely monitor evolving government support and align market entry or expansion plans accordingly. 

Clean and low-carbon hydrogen alternatives 

China is placing strong emphasis on replacing fossil-fuel-based hydrogen with cleaner alternatives across its industrial system, creating a range of opportunities for foreign technology providers and project developers.  

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The Green Hydrogen Implementation Plan promotes several areas for development in this field. First, major energy- and materials-intensive sectors, such as refining, petrochemicals, coal chemicals, non-ferrous metals, semiconductors, and pharmaceuticals, are being encouraged to substitute conventional fossil-derived hydrogen with clean or low-carbon hydrogen. This shift is expected to generate demand for advanced electrolysis technologies, hydrogen purification systems, and equipment that can be integrated into existing production lines. 

Second, authorities are prioritizing the development of low-cost renewable-energy-based hydrogen production. This includes advancing “solar + storage” solutions, promoting integrated “hydrogen production + hydrogen use” projects in regions rich in wind and solar resources, and supporting off-grid or weak-grid hydrogen production models. These initiatives open space for foreign firms with expertise in renewable integration, energy storage, and high-efficiency power electronics. 

The plan also highlights frontier areas such as coupling industrial waste heat with high-temperature electrolysis and leveraging offshore wind for hydrogen production. In addition, China is encouraging the scaled-up purification of industrial by-product hydrogen and the installation of carbon capture, utilization, and storage (CCUS) systems at fossil-based hydrogen facilities, creating further opportunities for specialized equipment and engineering services. 

A promising but uncertain future 

China’s hydrogen industry presents a complex but promising landscape for foreign investors. On the demand side, hydrogen’s potential role in decarbonizing hard-to-abate sectors positions it as a strategic future energy source with significant long-term growth prospects. This potential is further reinforced by strong government backing, with hydrogen repeatedly identified as a priority emerging industry and a focus of national development planning. These factors create a potentially favorable environment for foreign participation across multiple segments of the value chain. 

At the same time, the industry’s immaturity poses inherent risks. Production, infrastructure, and end-use applications are still developing, and recent years have shown that market growth can be slower and more uneven than expected. For this reason, investors should adopt a cautious and selective approach, targeting segments where early commercial opportunities exist, limiting exposure in areas facing high uncertainty, and aligning closely with evolving policy incentives. 

With 12 palace-level hotels and a reputation for the refined, Paris has long been a global benchmark for luxury stays. Among the most storied of its offerings is the Intercontinental Paris Le Grand, a landmark facing the Opéra Garnier. Behind its baroque façade, travellers with taste and locals looking for a well-appointed dining experience head to its Winter Garden and Café de la Paix. 

For the past 15 years the hotel was managed by Christophe Laure, now newly appointed to lead all of Intercontinental Hotels Group’s (IHG) luxury and lifestyle properties. His promotion comes at a time when the sector is both fiercely competitive and continuing to see growth and expansion in the City of Light and beyond.

With an estimated value of $154.32bn (€132.5bn) in 2024, projections suggest the value of the global luxury hospitality sector will exceed $166bn (€142bn) before the end of 2025 and surpass $218bn (€187bn) by 2029. France is very much a key player in this growth. The French luxury-hospitality market was valued at approximately $12.16bn (€10.43bn) in 2024 and it is anticipated to grow at an average annual rate of 2.74 per cent through 2029.

So how does one ensure that their property sees a decent chunk of change from this rise in luxury-hospitality stays? At a time when hotels are branching into experiences, sustainability initiatives, merchandise, fashion collaborations, wellness and heritage storytelling, there’s a lot for any hotelier to consider when trying to keep their establishment booked, profitable and relevant. As Laure tells Monocle, hotels such as the Intercontinental are refining their approaches to hospitality to mark themselves clearly as luxury players as opposed to the many high-end options. 

In the calm of the grand glasshouse, Laure confides his plans for 2026, discusses the state of the luxury hospitality market and how the Intercontinental is matching evolved guest expectations. 

With the competition in the upper-luxury segment so tough in Paris at the moment, how does Intercontinental stand out?
Our history is rooted in international travel and that remains our strength to this day. When Pan American World Airways was opening routes between North and South America in 1946, the CEO of Pan-Am told the president that [new hotels at the airline’s destinations] would live up to the standards of Pan-Am’s glorious cabins, and so the first Intercontinental hotel was born to provide quality and safe accommodation to the traveller crossing continents for business.

How do you meet the specific needs of the clientele of upper-luxury travellers who are constantly on the move?
This might seem obvious but the first thing that you need when you travel abroad is to feel safe and we take that very seriously. Then the key is attention to detail. When our customers walk into their room, we want them to feel that they are the first to ever stay there, that it’s brand new. Our clientele also cares about attentive service: always being there without seeming to, being present but discreet, along with high-quality cuisine, of course.

Are there markets where you find this is in especially high demand?
Asia and the Middle East. The Middle East is a more mature market now; we have been there for about 30 years. But Asia – even though China is in the midst of a slowdown – is a market where there is a lot of interest in what we do. There is an eagerness there to discover and reproduce what we offer in France. I have a client who sent me some photos of a hotel where he was staying in Hanoi recently and the layout is remarkably similar to Le Grand Hotel’s. It’s flattering. 

For a hotel group, what do you think is key to a successful international expansion?When you want to grow roots in a new market, you need to respect what the people there are used to consuming. But at the same time, put forward your own expertise and offer something new. 

For example, IHG was one of the first groups to invest in China. Today we have 800 hotels there. There are properties from our global brands, such as Intercontinental, Kimpton and Crowne Plaza. But we also created a completely new brand, Hualuxe, which is a Chinese label dedicated to the Chinese market. This way everyone gets what they want. International travellers can rely on brands that they already know and love, and we show the domestic clientele that we are also attuned to their expectations. 

Looking ahead, what are the heavy trends that you see shaping hospitality?
In short, the human side of it. Customers want to be recognised: they crave that empathy, that sense that we know who they are and what they need – how they like their breakfast, for instance – because they have stayed with us in the past and that’s how we keep them coming back. That’s not to say there isn’t a technological aspect to this human touch. We have the longest-running loyalty programme in the business and that has served us well. We also want to provide customers with the convenience of getting updates on their booking and their stay through an app. For our staff as well, we are investing heavily in technology to provide new tools that allow them to spend as much time as possible on personal interactions that really make the biggest difference in our business.

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Lloyd’s Register (LR) and Latsco have successfully completed a proof-of-concept for a new standard in digital class assurance with data-driven surveys.  

This collaboration aims to demonstrate how verified operational vessel data can fully meet class survey requirements, without compromising safety, integrity, or technical rigour.  

The proof-of-concept was conducted on the vessel HELLAS MARGARITA during an active voyage to Singapore. Using LR’s approved Digital Survey Test Procedure, the project team remotely tested, recorded and verified the vessel’s auxiliary engine alarms, controls, shutdowns and safety systems through raw data capture.   

The process was then validated by a physical inspection, confirming that the digital approach using raw data delivered the same level of assurance, accuracy, and safety as traditional methods. 

The results confirmed that data-driven methodologies can match and potentially exceed the technical assurance and data integrity of conventional onboard physical surveys. While existing regulations still require physical attendance for survey requirements, this project demonstrates how verified operational data could allow for more efficient, transparent, and scalable compliance processes, reducing the need for physical attendance and enabling smarter fleet management. 

Following the project success, LR and Latsco plan to jointly extend the methodology test across additional vessels and systems to validate the framework repeatability with the aim to establish a pilot scheme for digital class assurance.  

Elina Papageorgiou, Vice President Greece and Cyprus, Lloyd’s Register, said: “This proof of concept gives confidence that digitalisation is an enabler within the maritime industry without compromising safety or integrity. By validating the use of verified operational data for survey assurance, we’re taking an important step towards a smarter, more connected maritime industry.”   

Konstantinos Chatzitolios, Lead Client Relationship Manager, Lloyd’s Register, added: “Working closely with Latsco on this project has shown how strong collaboration and shared innovation can accelerate the adoption of digital class solutions. The success of this trial demonstrates what can be achieved when operational excellence and digital capability come together to redefine the future of ship classification.” 

Antonis Georgantzis, COO, Latsco, said: “This initiative proves that trusted operational data can be used to credit survey requirements without compromising safety or technical integrity, while giving our vessels greater flexibility within increasingly tight trading schedules. This new approach will gradually reshape how we work, starting today.” 

Iasonas Zacharioudakis, Technology Manager, Latsco, added: “Using telemetry, we verified that survey items can be credited on data-proven judgements with enhanced transparency and trust compared to the traditional approach. Raw data becomes a real operational and safety advantage.” 

LR’s Digital Transformation Research Programme continues to advance the industry’s understanding of how digital technologies can enhance assurance, safety and operational performance. Central to this programme is the Digital Maturity Index (DMI), a framework designed to help shipowners assess and progress their digital capabilities. Remote surveys, such as the one demonstrated in this project, represent a key application within the DMI, showcasing how verified operational data can be used to deliver robust, data-driven assurance while supporting more efficient and resilient vessel operations. 

Aviva urges brokers to step in as SMEs underestimate cyber and other disruptive risks.

New SME research from Aviva finds that 36% of businesses rank cyber as their most significant risk, more than any other insurable risk^[1]. 

However, the smallest SMEs (less than 10 employees) appear markedly less concerned, with just one in five (20%) micro firms selecting cyber as their biggest risk, compared with more than 40% across all other size bands. Appetite and confidence to tackle the issue are also low, with IT and cyber security topping the list of tasks SME decision makers dislike most (25%). 

Alongside cyber, SMEs highlighted business interruption (30%), reputational damage (27%), fraud (26%) and regulatory change (26%) as top risks. Despite this, only 32% of SMEs are using a broker to stay up to date on regulatory or legislative changes that could affect their business; 48% rely on their own research. At the same time, 98% say they are up to date – a confidence that could be misplaced.

To mitigate a wide range of risks – from cyber incidents to business interruption and regulation – SMEs should make the most of their broker and the services they provide, ensuring they have the confidence and ability to grow.

SME cyber claims on the rise 

Aviva’s research is in sharp contrast to its own cyber claims data, which shows that the number of cyber claims Aviva received from SMEs rose by 10% year on year^[2]. The average cost of a cyber insurance claim from an SME is £40,000, with an average lifecycle of 300 days, underlining the need for adequate business interruption insurance alongside cyber cover^[2].

Beyond cyber: interconnected risks that stop SMEs serving customers

Aviva’s research shows business interruption (30%) and reputational damage (27%) are among the top SME concerns. One of the most effective ways to protect a business’s reputation is to ensure it can remain open. Cyber attacks often result in temporary, and in some cases permanent, closure of a business. Taking steps to prevent and protect a business from such an attack not only ensures its ongoing operations, but also supports its reputation. 

Caspar Stops, Cyber Underwriting Manager, Aviva, said: “Cyber attacks on UK businesses are rising, with small firms increasingly targeted. While many companies are improving their own cyber defences, recent high-profile breaches often begin with vulnerabilities in third-party vendors or supply chains. 

“As businesses become more digitised and interconnected, it’s challenging to monitor the security perimeter beyond their own walls. Attackers don’t care about size, they seek opportunity – meaning that unprepared organisations, regardless of size – are most at risk. Brokers have a unique opportunity to help smaller firms become more engaged and resilient.”

Protecting SMEs

Aviva recommends that brokers use renewal and midterm touchpoints to promote simple, high-impact controls for SME clients:

1. Use multi-factor authentication (MFA) on email, remote access and critical apps; enable phishing resistant MFA where feasible.  

2. Carry out regular offline backups and tested restoration procedures to minimise ransomware downtime. 

3. Patch fast, prioritise internet facing systems, and remove/limit remote desktop exposure. Download the National Cyber Security Centre: It’s time to act guide.

4. Employ business continuity basics: map critical suppliers, set recovery time objectives, and rehearse incident/communication plans to protect customer service and reputation. 

5. Insist on governance and training: assign clear responsibility for cyber/operational resilience and run short, role-relevant awareness refreshers to blunt social engineering.

Aviva responds 

To help brokers close the protection gap, Aviva offers two cyber products designed for SMEs:

• Cyber Respond: a streamlined solution for micro businesses (fewer than 10 employees; turnover <£1m), focused on 24/7 incident response, with cover for data/IT systems damage, increased cost of working, and optional external cyber crime (e.g., social engineering / funds transfer fraud). 
• Cyber Complete: Aviva offers its broadest protection, including first-party, third-party, business interruption, data regulatory, and reputational management covers, with detailed policy wordings available for brokers.

ends

References:

^1. _{The research was conducted by Censuswide, among a sample of 500 insurance decision makers at SME businesses in the UK. The data was collected between 27.08.2025 – 03.09.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council. [↑]}

^2. _{Based on year-to-date cyber claims data from Aviva. [↑]}

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The latest episode of Studio Sandvik brings together some of the most exciting developments across the company. We celebrate the winners of this year’s Sandvik Innovation Prize; a Mobile Crushing and Screening team whose new jaw crusher chamber platform delivers remarkable gains in both productivity and wear life.

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The episode also highlights CIO Sofia Sirvell’s recognition as CIO of the Year by Dagens Industri, and much more.

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