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SMEs more likely to purchase cyber cover since pandemic: GlobalData

28th September 2020 - Author: Matt Sheehan

Data and analytics company GlobalData has recommended that insurers should increasingly focus on larger small and medium-sized enterprises (SMEs) following the COVID-19 outbreak.

cyber-securityAnalysts found that 8.5% of SMEs said they were more likely to purchase cyber insurance since the start of the pandemic, and among medium-sized SMEs this figure rose to 33%.

This data shows that a third of medium-sized businesses are currently a perfect target for insurers and brokers, following the uptick in cyber incidents over the last few months.

However, the vast majority of sole traders (88%) said their likelihood of purchasing cyber cover had not changed, meaning they should be less of a target for cyber insurers.

“While the majority of SMEs across all size categories have remained neutral on being more or less likely to purchase cyber insurance, even a small rise can help insurers increase product penetration,” said Ben Carey-Evans, Insurance Analyst at GlobalData.

“Fraudsters have capitalized on employees working from home – with phishing scams, in particular, on the rise – preying on fears surrounding the pandemic such as using COVID-19-based hooks in phishing emails. Employees who are out of the office and away from colleagues are more at risk as they are less able to check the validity,” Carey-Evans continued.

“GlobalData’s survey illustrates that this is something a significant number of SMEs have picked up on, and enough of them are more likely to purchase cover as a result, which should encourage insurers to create and push cyber policies.”

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