What it means for your clients

In November 2025, the UK Parliament introduced the Cyber Security and Resilience (Network and Information Systems) Bill, a major step in strengthening national cyber resilience. It represents the most significant update to the UK’s cyber governance framework since the original NIS Regulations and signals a clear shift in expectations for organisations that support essential services.

The Bill reshapes how resilience, cyber preparedness and supply chain risk are viewed across the UK economy. While your clients will need to seek their own legal or compliance advice, understanding the headline themes can help brokers frame the right conversations around cyber risk and the value of robust insurance protection.

What the bill sets out to do

According to the UK Government, the Bill aims to:

• Improve national cyber resilience, ensuring essential services can withstand and recover from incidents.
• Expand the scope of the NIS framework, bringing more digital service providers and operational technology into regulation.
• Strengthen oversight and enforcement, with clearer reporting obligations for serious cyber incidents.

In the government’s words, this bill has been designed to deliver a step-change in the UK’s national security by making essential and digital services more secure in the face of both cyber criminals and threat actors seeking to cause disruption.

How it may affect your clients

The Bill will affect what many would consider “critical national infrastructure”, it will also widen its reach to organisations that provide digital services, cloud hosting, managed IT, and other enabling technologies.

This means some of businesses may eventually fall within the scope of the bill, even if they do not see themselves as part of a critical sector. Industry analysis suggests potential implications such as:

• Stricter requirements for incident reporting.
• Greater supply chain scrutiny.
• Minimum expectations around business continuity.
• Potential penalties for failure to meet regulatory duties.

Marsh highlights that the Bill is likely to bring more digital service providers and MSPs under regulatory oversight.

It is important to note that interpretations differ. Guidance varies on which organisations will be directly regulated, which is why many businesses are being encouraged to stay alert and begin monitoring developments.

What businesses should be thinking about

Although the Bill is still progressing, early commentary indicates that organisations may need to consider:

Operational resilience and continuity

The Bill reinforces expectations that essential services must be able to continue operating even during a cyber event.

Visibility of third-party risk

Attackers routinely exploit weaknesses in supply chains. The Bill suggests a growing emphasis on how organisations select, assess and oversee digital suppliers.

Clearer incident response processes

Several analysts point to the likelihood of tighter reporting timelines, meaning organisations may need clearer internal escalation procedures.

Leadership accountability

The Bill aligns with a broader trend towards embedding cyber risk into governance and board-level decision making.

Because interpretations differ across industry sources, your clients should review multiple perspectives and draw their own conclusions about how the Bill may affect them.

What this means for businesses

For businesses, the key takeaway is that cyber resilience is becoming an expected part of good governance, not just an optional investment. This gives brokers an opportunity to help clients understand that the regulatory environment is shifting, supply chain risk is under increasing scrutiny, and cyber insurance plays a crucial role in supporting resilience, not just recovery.

Many clients, particularly SMEs and mid-market organisations, may not realise that they could be indirectly affected through their digital dependencies. Helping them understand this evolving landscape strengthens your value as an adviser and opens the door to meaningful conversations about risk, continuity and protection.

Speak to our Cyber team

For a broader look at privacy requirements, cyber regulation and related guidance, read our piece on cyber privacy regulations as part of our cyber hub.

If you’d like support in talking to clients about how the UK Cyber Security and Resilience Bill could shape their exposure, our Cyber team is here to help. We can provide context, insight and practical guidance for your next client conversations.