Around a fifth of small to medium-sized businesses bought cyber cover due to a broker’s recommendation, says analytics firm
Nearly a quarter (24.9%) of UK-based small to medium-sized enterprises (SMEs) have purchased cyber insurance because of the uptick in remote working arising from the Covid-19 pandemic, according to research by data and analytics firm GlobalData.
The firm’s UK SME Insurance survey, which polled 2,000 SMEs between July and August 2021, further found that 21.6% of respondents bought cyber cover because of media reports on cyber attacks, while 21.9% purchased this type of insurance due to a recommendation from their broker.
Meanwhile, around 17.3% of SMEs invested in cyber insurance following a conversation with their financial advisor.
Benjamin Hatton, insurance analyst at GlobalData, said: “Businesses are becoming more proactive in managing the dangers of a cyber attack in the knowledge that home working can lead to greater risks in this space.
“Media coverage showcasing the perils of cyber attacks is important in continuing to highlight the threats that businesses face.
“Brokers play an important role in advising customers to take the right level of cover, ensuring that firms are properly protected from cyber threats.
“Financial advisors also have this responsibility in ensuring that UK SMEs have the cover that they need to protect their business against the growingly hostile cyber landscape.”
Target of attack
GlobalData’s findings further show that only 31.5% of UK SMEs have cyber cover – primarily, these businesses believe that their company is not threatened by cyber risks.
More than a third (38.1%) of SME respondents that do not have cyber insurance don’t think their business will be targeted by a cyber attack, while 17.2% think the cover is too expensive.
Hatton added: “For the insurance industry moving forward, it is important for providers to assist businesses in purchasing the level of cyber insurance that most suits their individual needs.
“Targeting underserved small and micro-sized firms is key to winning future business in this space.”
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