23 Sep 2020
Posted in Coronavirus
A third of medium-sized businesses are more likely to purchase cyber insurance since COVID-19 outbreak
Insurers looking to target businesses with cyber insurance following a rise in attempted attacks during lockdown should focus on larger small and medium-sized enterprises (SMEs), according to GlobalData, a leading data and analytics company.
GlobalData’s 2020 UK SME Insurance Survey found that although only 8.5% of SMEs said the likelihood of them purchasing cyber insurance had either increased or significantly increased since the start of the pandemic, this proportion was 33% for medium-sized SMEs. This means a third of medium-sized businesses are currently a perfect target for insurers and brokers. The vast majority of sole traders (88%) said their likelihood of purchasing cyber cover had not changed, meaning they should be less of a target for cyber insurers.
Ben Carey-Evans, Insurance Analyst at GlobalData, comments: “While the majority of SMEs across all size categories have remained neutral on being more or less likely to purchase cyber insurance, even a small rise can help insurers increase product penetration.
“Fraudsters have capitalized on employees working from home – with phishing scams, in particular, on the rise – preying on fears surrounding the pandemic such as using COVID-19-based hooks in phishing emails. Employees who are out of the office and away from colleagues are more at risk as they are less able to check the validity.
“GlobalData’s survey illustrates that this is something a significant number of SMEs have picked up on, and enough of them are more likely to purchase cover as a result, which should encourage insurers to create and push cyber policies.”