COVID-19 has presented brokers with challenges and opportunities, as they look to capitalize on increasing demand for cyber insurance while struggling with their own digital capabilities. GlobalData’s 2019 UK SME Insurance Survey found that 46.2% of cyber insurance policies for SMEs were distributed by brokers in 2019, highlighting how this is a big opportunity for them, according to GlobalData, a leading data company.
GlobalData insurance analyst Yasha Kuruvilla’s presentation on ‘How commercial insurance is impacted by COVID-19 and what this means for brokers’ identified cyber as a key product line as only 34% of employees expect to return to the office full time after lockdown eases, which significantly increases cyber security risks.
Kuruvilla, comments: “Employees’ expectations of working arrangements have shifted, meaning remote working is here to stay. This provides an opportunity on which cyber insurance experts can capitalize.
“Businesses will rely on advice from third parties when purchasing cyber insurance, as it in a new product that involves more complex risks. Brokers that gain expertise here will have an advantage over competitors. However, many brokers have been slow to adapt digital technologies, which will hamper them in an increasingly virtual world.”