SMBs driving market surge

Last month, we wrote that as a result of findings by NTT Security, 66% of UK businesses are not insured in the event of a breach of information or data loss. Senior executives agreed that cyber insurance was vital to protect against cyber-attacks, but were unaware if their company had sufficient protection or suitable coverage in place. This may have strengthened the notion that such protection was typically utilised by larger companies with more capital at their disposal, but according to a recent study by Cyber Policy, it appears as if that isn’t the case.

The firm has revealed that the small and medium-sized business market has seen tremendous growth within the last year, with quarterly growth averaging out at 69% and reaching a peak of 150%.

This is down to several factors, namely due to the increased accessibility and affordability of cyber insurance coverage and packages that make it far easier to seek out a product to suit a business of any size. The industry is responding to a global need for cyber insurance with an increasing number of brokers offering flexible and appropriate cover that isn’t solely affordable for large businesses, and it’s clear that SMBs are taking advantage of that whilst also typically requiring higher limits and extended coverage.

Beyond that, what’s provoked this need for protection from cyber from SMBs? The study suggests that contractual obligations are playing a big part, with many alluding to contractual requirements with third-party vendors meaning that cyber insurance is an essential part of the way that they must conduct business in order to gain and secure clients.

SMBS are also more likely to be the target of cyber-attacks, with half of all attacks in 2017 targeting them due to the comparative ease of targeting their data in comparison with big companies with stronger security.

With this in mind, it’s no wonder that small-to-medium business owners are driving this surge in the cyber insurance market as the business world continues to adapt to the ever-evolving threat posed by cyber-attacks.

If your firm is unhappy about its coverage or strategy for coping with data loss and security breaches, please contact us to discuss your cyber insurance options.