23 Jun 2020
Posted in Insurance
Insurers will see take-up of cyber insurance rise following COVID-19, says GlobalData
The rise in remote working due to the pandemic will increase the risk of cyber- attacks, and leave small businesses vulnerable, according to GlbalData, a leading data and analytics company. This presents a chance for insurance to improve penetration rate.
Findings from GlobalData’s report, Thematic Research: Cyber Insurance, highlight that the uptake of cyber insurance among UK SMEs has increased considerably since 2015, reaching 18.8% of the total SME economy by 2019.
GlobalData analyst, Jazmin Chong, commented: “Cyber insurance uptake has been the most impactful among micro businesses, which saw a 300% increase between 2016 and 2019, reaching 17.8%. This huge increase is due to the very low proportion of micro businesses that held cyber insurance in the past. However, small and medium businesses have also recorded notable rises. More than 50% of medium enterprises now hold cyber insurance, highlighting the growing awareness around the importance of protection against cyber incidents among larger-sized businesses. Meanwhile, 40% of small enterprises hold cyber insurance as of 2019.
“The pandemic is bound to accelerate the market. GlobalData expects a further increase in cyber insurance, not only because of the cyber risks associated with employees working from home, but also because the pandemic has further entrenched companies’ heavy reliance on technology to fulfil day-to-day operations.”