AXA XL’s S-RM acquisition puts UK manufacturing cyber resilience in focus

Growing concern over cyber resilience in UK manufacturing is putting greater emphasis on prevention and incident response, as new research reveals significant gaps in the preparedness of industrial businesses.

The warning comes as AXA XL moves to acquire the remaining shares in UK-headquartered cyber security and corporate intelligence consultancy S-RM, expanding its capabilities beyond conventional insurance and into risk prevention and response. AXA XL currently owns approximately 49% of S-RM.

The deal follows the publication of new Make UK research showing that 30% of manufacturers experienced a cyber incident either directly or through their supply chain during the past year. Almost a third of firms either have no cyber insurance or are unsure whether they are covered, while only around half have an incident response plan in place.

For manufacturers that were disrupted by a cyber incident, production downtime and increased operational costs were among the most common consequences. Some 31% of businesses affected by a cyber attack on a supplier also reported delays to customer deliveries, underlining the potential for vulnerabilities to spread through increasingly interconnected industrial supply chains.

From insurance to prevention

With the acquisition of S-RM, AXA XL is looking to strengthen the risk prevention and advisory services it can offer businesses.

Founded in 2005, S-RM provides cyber risk assessment, managed detection, incident response, specialist investigations and geopolitical intelligence. Following completion of the acquisition, it is expected to become part of the newly created AXA XL Risk Advisory business while continuing to serve its existing global client base.

Scott Gunter, CEO of AXA XL, said clients increasingly want support that goes beyond insurance coverage, including data and expertise that can help them anticipate threats, reduce their exposure and respond when incidents occur.

The acquisition is not directly linked to Make UK’s findings, but the two developments point towards the same shift in the way businesses are being encouraged to approach cyber risk. Insurance can help manage the financial consequences of an attack, but resilience increasingly depends on organisations understanding vulnerabilities, protecting supply chains and having tested plans for what happens when defences fail.

Make UK is calling on manufacturers to treat cyber security as a board-level issue, strengthen cyber hygiene and supplier assurance, and ensure recovery plans are tested before disruption occurs.

Building industrial resilience

For aerospace, defence, security and space businesses, the issue is particularly relevant where highly connected manufacturing operations sit within complex multi-tier supply chains.

AXA XL already provides insurance and risk management services across sectors including manufacturing and aviation and aerospace, while the addition of S-RM will increase the cyber, intelligence and crisis-response expertise available through its advisory operation.

The acquisition remains subject to regulatory approval and other closing conditions, with completion expected by the end of September 2026.