Annual Survey Results
Cybersecurity
Cybersecurity is a top priority for the insurance industry, though many still have cost concerns.
Cyberattacks are now front-page news, with individuals increasingly understanding the risks to their personal data and financial well-being. Based on this year’s survey results, it’s clear that brokers and SMEs have made addressing those risks a top priority. Still, more than a quarter of brokers point to cost concerns and to confidence in in-house security measures as the primary reasons why companies are not purchasing cyber insurance.
Survey Key Findings
SMEs Are Cyber Aware
More than 90% of SMEs are familiar or somewhat familiar with cyber risks.
Targeting Personal Data
Viruses, spyware, malware and other malicious code continue to be the most frequent forms of cyberattack, according to 61% of brokers.
Growing SME Coverage
Forty-six percent of SMEs have purchased a cyber insurance policy – up from 40% in 2018.
COVERED INCIDENTS COST LESS
The reported average amount of damage from uncovered cybersecurity incidents was $63,500 compared to $33,460 for covered incidents in the U.S.
Fewer Losses
The percentage of companies suffering no loss from uncovered cybersecurity incidents increased in the U.S. (21% vs. 15% in 2018) and U.K. (22% vs. 16%).
“Cyber insurance products like Argo Pro’s Cyber Tech PROtectSM can be customized to meet a company’s coverage requirements by offering a full spectrum of coverage solutions related to professional and technology services. This includes coverage for the processing and dissemination of content, and the increasingly difficult challenge of keeping a company’s computer networks and information private and secure.”Paul Miskovich, Group Head of Cyber, Argo Group
Cyber coverage for SMEs more common in U.S. than in U.K.
Have you purchased any form of cyber insurance?
Cost, confidence in internal security drive SMEs’ cyber insurance decisions
Why have you not purchased any form of cyber insurance?
It’s too expensive.
U.S. 37%
U.K. 39%
My in-house security personnel and processes provide all the protection I need.
U.S. 33%
U.K. 50%
