Less than half of cyber policies are distributed through the broker channels
Brokers have been urged to make the most of post-Covid opportunities to sell cyber insurance products to SMEs.
A 2019 survey by data company GlobalData found that only 46.2% of cyber policies are distributed via brokers.
with a significant portion of workers expected to take up home-working on a permanent basis, this poses the risk of greater cyber crime exposure for small businesses and therefore should increase demand for cyber insurance, GlobalData said.
Insurance analyst at GlobalData Yasha Kuruvilla said: “Employees’ expectations of working arrangements have shifted, meaning remote working is here to stay. This provides an opportunity on which cyber insurance experts can capitalise.
“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.”
In May, a report by cyber risks consultancy Cybercube said that the cyber market is facing several challenges that are stifling adoption rates, such as the speed at which cyber insurance wordings are evolving, the perception that cyber insurance is a “small ticket item” and a lack of joined-up thinking between organisations.
The report found that brokers can support underwriting partners with cyber risks, as understanding the view of both clients and underwriters could maximise efficiencies and be mutually beneficial.
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