GlobalData findings counsel the principle motive UK SMEs would not have a standalone cyber insurance coverage coverage is as a result of they assume it’s unlikely their firm will probably be a sufferer of a cyberattack. Nonetheless, a report by cybersecurity marketing consultant JUMPSEC discovered that the UK is probably the most focused nation outdoors the US for ransomware assaults.
GlobalData 2022 UK SME Insurance coverage Survey
In GlobalData’s 2022 UK SME Insurance coverage Survey, 42.6% of respondents said that the principle motive they don’t have a standalone cyber insurance coverage coverage is as a result of they assume it’s unlikely their firm will probably be a sufferer of a cyberattack. This reveals that serving to SMEs perceive their cyber danger stays a key problem for insurers in rising new enterprise on this line.
As well as, 17.1% of respondents said that cyber insurance policies are too costly, whereas 16.8% declare their firm is effectively protected. As an illustration of the cyber danger confronted by UK SMEs, a report from JUMPSEC discovered that the UK is probably the most steadily focused nation outdoors the US for ransomware assaults.
In Europe, 20% of such assaults happen within the UK. Moreover, JUMPSEC discovered that ransomware assaults elevated by 87% within the UK within the first half of 2023 (in comparison with 37% globally). It expects 2023 to be probably the most prolific 12 months for ransomware, surpassing the earlier highs in 2021.
Whereas many SMEs consider it’s unlikely they are going to fall sufferer to a cyberattack, they’re step by step changing into extra involved about this danger. GlobalData’s 2022 UK SME Insurance coverage Survey discovered that fifty.7% of SMEs are involved concerning the danger of a cyberattack – a 1.2 proportion level enhance in comparison with 2021. The hesitance in direction of buying a cyber insurance coverage coverage amongst SMEs is considerably comprehensible, with a lot of them trying to lower prices wherever potential amid the cost-of-living disaster. But the monetary and reputational value of being a sufferer of a cyberattack will be deadly, particularly in such unsure macroeconomic situations.
General, the price of falling sufferer to a cyberattack far outweighs the price of a cyber insurance coverage coverage. Insurers want to speak the significance of those insurance policies and persuade SMEs that they should enhance their safety as cyberattacks grow to be a rising concern.
Charlie Hutcherson is an affiliate analyst at GlobalData
