Today’s new normal: attacks, attacks and more attacks
Organizations that do not view themselves as a potential cyber target do not appreciate what it means to be a digital organization in today’s hyperconnected world.
Argo’s survey found that 63 percent of all respondents had been the victims of a cyber incident during the last 12 months. In fact, one in four respondents are blindsided by a phishing email, ransomware attack or other cyber incident at least once a month.
Smaller companies are less likely to be insured
The survey also interviewed brokers about clients and their cyber preparedness, types of cyber incidents, and attitudes toward cyber insurance.
The vast majority (81 percent) of the brokers said many of their clients don’t understand the importance of cyberthreats to their business, and they aren’t allocating sufficient resources to defend against them. This is particularly true of small SMEs.
Cyber insurance coverage also varies significantly by company size. The larger an SME is, the more likely it will have a policy. For instance, the Argo survey found that:
- 27 percent of SMEs with annual revenues below $25 million had insurance.
- 48 percent of SMEs with annual revenues between $25 million and $100 million had insurance.
- 55 percent of SMEs with annual revenues between $100 million and $250 million had insurance.
Overall, large SMEs are twice as likely to protect their business with cyber insurance than small SMEs.
Insured customers are happy customers
The second leading reason that SMEs gave for not buying cyber insurance is cost. However, respondents that have insurance are overwhelmingly positive about their policy.
- 87 percent of SMEs reported their insurance performed as expected.
- 86 percent said their insurance covered the costs of their security breaches.
- 67 percent were happy with their insurance and had no plans to change their provider until they review their policy in 12 months.
One area for improvement is the need for a faster response time to claims, a factor that was singled out by 32 percent of brokers.
Cyber insurance demand expected to grow despite hesitation
Read the full survey results to learn more about how businesses are approaching cyber security and how brokers are ensuring businesses have adequate coverage.