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Are more and more SMEs not willing or able to get cyber cover?

Are more and more SMEs not willing or able to get cyber cover? | Insurance Business

Are more and more SMEs not willing or able to get cyber cover?
Argo Group International Holdings, Ltd. has released its cyber insurance survey, and it looks like small- and medium-sized enterprises (SMEs) either do not have the means to insure themselves against cyber risks or, worse, they’re not interested.

For the Under Attack and Unprepared: Argo Group Cyber Insurance Survey 2017, the international specialty insurance company surveyed 150 brokers and 200 SMEs in both the UK and the US. Here are the numbers:
  • 57% do not have any kind of cyber insurance, even with 63% having experienced some form of cyber incident.
  • Only 27% of SMEs are “likely” or “very likely” to purchase cyber insurance, yet 60% don’t think their current internal cybersecurity processes are adequate.
  • As for the reasons for not getting covered, 42% believe their in-house security is adequate; 35% find insurance too expensive; and 32% cited a lack of interest from senior management or the board of directors.

“Companies continue to overestimate their ability to protect against potential attacks and underestimate the damage a cyberattack can cause,” said senior vice president, group head of cyber Simon White. “It’s only a matter of time before the next major cyberattack, which is why it’s crucial for companies to take the time to re-evaluate how they protect themselves.”

On the flip side of the coin though, 89% of protected SMEs say their cyber insurance is meeting expectations, with 86% stating their policy covered the breaches they suffered. Meanwhile 36% of the insured SMEs have filed claims with their providers in the past 12 months.

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