GlobalData findings counsel that SMEs are extra cautious about the specter of cyberattacks than they have been in 2021, however Aviva’s newest SME Pulse survey discovered that over a 3rd of SMEs don’t have any cyber insurance coverage. Disruption will not be a great factor for cyber cowl
Low cyber insurance coverage penetration charges will not be essentially resulting from an absence of concern. GlobalData’s 2022 UK SME Insurance coverage Survey discovered that fifty.7% of SMEs are involved concerning the danger of a cyberattack – a 1.2 proportion level enhance from 2021. Regardless of this, Aviva’s October 2022 SME Pulse survey discovered that 34% of such companies don’t have any cyber insurance coverage cowl whereas 21% have suffered a cyberattack within the final 12 months.
Worth stays a key barrier to entry for SMEs, with 17.1% citing this issue as the primary motive they don’t have cyber insurance coverage cowl as per GlobalData’s 2022 survey. Moreover, 37.1% of respondents stated that the explanation for canceling or switching their cyber insurance coverage coverage was as a result of they wanted to chop prices. The dearth of uptake is considerably comprehensible with many SMEs seeking to lower prices wherever attainable amid surging inflation and power costs. But the monetary and reputational value of being a sufferer of a cyberattack might be deadly, particularly in such unsure macroeconomic situations.
Cybercrime is an growing downside. It’s alarming that many SMEs don’t have any cowl because the injury prompted might be big. Regardless of being more and more involved concerning the danger of cybercrime, 42.6% assume it’s unlikely their firm shall be a goal of a cyberattack in accordance with GlobalData’s 2022 survey. But as Aviva’s findings spotlight, this can be a widespread false impression. Aviva’s survey additionally discovered that 59% of SMEs thought that within the occasion of dropping entry to information and programs in a cyberattack they may very well be again to regular inside a month. Others estimated it may take far longer. For a lot of SMEs, being out of enterprise for over a month would finally finish in enterprise closure.
Total, the price of falling sufferer to a cyberattack far outweighs the price of a cyber insurance coverage coverage. Insurers want to speak the significance of those insurance policies and persuade SMEs that they should enhance their safety as cyberattacks change into a rising concern.