Are You Ready to Trust Cyber Insurance? A Closer Look at Midsize UK Firms' Concerns
Are You Ready to Trust Cyber Insurance
A recent study by Coalition, a prominent cyber insurance provider, has raised an important question: Are midsize UK firms ready to trust cyber insurance?
The survey, conducted earlier this year, involved 500 senior cybersecurity professionals from mid-sized UK businesses. The results reveal a significant wariness towards cyber insurance among IT security leaders, with only 19% of respondents reporting a positive experience with it.
The findings are striking: 87.6% of participants had experienced a cyber-attack in their current or past roles, underscoring the urgent need for robust cybersecurity measures and effective insurance policies to mitigate the financial impact of these attacks.
However, when it comes to cyber insurance, many respondents expressed concerns. Specifically:
30.6% found it difficult to provide the required information to insurers.
25% felt that insurers lacked adequate cybersecurity expertise.
Furthermore, 43.4% of those surveyed reported insufficient funds to protect against cyber threats adequately. This financial strain only adds to the complexity of adopting comprehensive cybersecurity measures, including insurance.
Tom Draper, Coalition’s UK Head of Insurance, emphasized the current perception among IT departments: “Our results show that many IT departments currently see cyber insurance as more of a ‘nice to have’ and not as a key pillar in their cyber risk management strategy. The findings also suggest that businesses are underwhelmed with their options and experiences. The message coming across loud and clear is that the UK cyber insurance industry has to be better at engaging with clients."
To bridge this trust gap, Draper suggests a more integrated approach: “By bringing IT security into the insurance conversation, insurers and brokers can increase trust in cyber insurance and better demonstrate its value. Coalition’s Active Cyber Insurance can fill some of the identified cybersecurity gaps through its cyber risk management platform, Coalition Control®, including threat intelligence, attack surface monitoring, and third-party risk monitoring."
Moreover, Coalition offers additional support that has proven invaluable to their mid-market clients, such as expertise in incident response, detailed onboarding calls, and 24/7 security support. Draper believes that this comprehensive support system is crucial for the future of cyber insurance.
As cyber threats continue to evolve, the need for effective cyber insurance becomes more critical. But the question remains: Are midsize UK firms ready to trust cyber insurance? The industry must address these concerns to build stronger, more confident relationships with their clients.