Insurers should persuade SMEs they’ll provide cyber insurance coverage that’s invaluable, corresponding to within the case of Hanover providing a cyber threat administration programme alongside its insurance coverage.
In accordance with GlobalData’s 2022 UK SME Insurance coverage Survey, SMEs have gotten increasingly involved in regards to the potential of a cyberattack. This sample has solely change into extra pronounced with the affect of the Russia/Ukraine battle. Nonetheless, uptake of cyber insurance coverage remains to be restricted and is just slowly growing.
GlobalData’s 2022 UK SME Insurance coverage Survey discovered that fifty.7% of SMEs are involved in regards to the threat of a cyberattack – a 1.2 proportion level improve from 2021. But value stays a key barrier to entry for SMEs. 17.1% cited this issue as the primary motive they don’t have cyber insurance coverage cowl as per the identical survey.
In the meantime, 34.4% of SMEs cancelled their cyber insurance coverage due to the necessity to minimize prices and 21.3% cancelled as a result of they weren’t happy with the extent of service supplied. These findings spotlight how worth must be added so that companies usually tend to retain their insurance policies. The necessity to broaden choices to incorporate providers corresponding to threat administration and cyber hygiene practices will change into important, not solely to draw prospects however to stay aggressive with different insurers. Higher safety practices will end in fewer claims, permitting insurers to scale back premiums, which might make the product extra inexpensive and manageable for purchasers.
It may be troublesome to decide on which business professionals to seek the advice of with given {the marketplace}’s abundance of cyber threat administration service suppliers. To assist policyholders safeguard their companies from cyber dangers and keep away from cyber losses, the Hanover CyberSecure Programme gathers a spread of options supplied by authorised business companions. As well as, many insurers, corresponding to RSA, provide threat administration providers that embrace threat assessments and motion plans so as to higher cater to the wants of their prospects.
General, the affect of being a sufferer of a cyberattack is far larger than the expense of buying cyber insurance coverage. As cyberattacks change into a much bigger fear, insurers want to elucidate the importance of this insurance coverage and persuade SMEs that they should strengthen their safety. Increasing the scope of their insurance policies is not going to solely profit insurers as a result of chance of claims decreasing – it can additionally provide prospects an elevated sense of worth for his or her insurance policies.
