The rise in remote working due to the COVID-19 pandemic will increase the risk of cyberattacks, giving insurers an opportunity to improve their cyber insurance penetration rate, according to analytics firm GlobalData.
The company said that cyber uptake had been on the rise even prior to the outbreak.
“Cyber insurance uptake has been most impactful among micro businesses, which saw a 300% increase between 2016 and 2019, reaching 17.8%,” said Jazmin Chong, GlobalData analyst. “This huge increase is due to the very low proportion of micro businesses that held cyber insurance in the past. However, small and medium businesses have also recorded notable rises. More than 50% of medium enterprises now hold cyber insurance, highlighting the growing awareness around the importance of protection against cyber incidents among larger-sized businesses. Meanwhile, 40% of small enterprises held cyber insurance as of 2019.”
Chong said that the effects of the pandemic were “bound to accelerate the market” even more.
“GlobalData expects a further increase in cyber insurance, not only because of the cyber risks associated with employees working from home, but also because the pandemic has further entrenched companies’ heavy reliance on technology to fulfil day-to-day operations,” she said.