Last week a landmark data breach case saw Morrisons suffer a defeat at the Court of Appeal, with the top UK grocery chain now facing the prospect of having to compensate over 5,000 claimants unless a further appeal at the Supreme Court manages to secure a win.
Now, if findings of a new global survey are anything to go by, then it looks like news similar to the abovementioned case – which you may read about here – are what’s driving cyber insurance sales. A comprehensive study by PartnerRe and Advisen found that responding to news of cyber events remains the primary reason for purchasing coverage.
Meanwhile the experience of a cyber-related loss ranks second among the most common reasons. “Some don’t consider until after an occurrence,” read one comment cited by PartnerRe’s market trends report. “Then they buy quickly.”
As for the obstacles in selling cyber insurance, 75% of respondents believe organisations simply do not understand their exposure, while 56% point to clients not understanding coverage. The reinsurer said the latter may see an improvement as coverage becomes consistent.
Meanwhile the poll also revealed an influx of new-to-market buyers of standalone cyber insurance, with 90% a combination of smaller businesses with revenues of less than $50 million and mid-sized ones with revenues of $50 million to $1 billion.
This year’s survey was participated in by 270 brokers and 70 underwriters from around the globe.