Cyber insurance takeup rises, though overall penetration remains lowPosted On: May. 18, 2017 3:14 PM CST
The takeup rate for cyber insurance is increasing, although still less than one-third of firms are buying it, says a survey issued Thursday by the Washington-based Council of Insurance Agents & Brokers.
About 32% of respondents’ clients purchased some form of cyber liability and/or data breach coverage in the last six months, according to the CIAB’s biannual survey. This compares with 29% reported in the CIAB’s October 2016 survey and 25% in April 2016.
“Survey respondents also suggested that the takeup rate among small and medium-sized enterprises (SMEs) is growing at a faster rate because clients are beginning to understand that cyber security threats affect all biasness,” said the survey report’s executive summary.
Of the policyholders who bought cyber coverage in the last six months, 44% increased their coverage levels, while 56% maintained their level of coverage. No one reported a decrease in coverage.
“This continues to demonstrate that clients ae finding value in their cyber insurance policies, in both pre-event evaluation and for post-breach response/risk mitigation,” said the summary.
Among other findings, 85% of respondents said premium pricing generally stayed the same or decreased. The average policy limit in the last six months was around $6 million, or double the reported $3 million in October 2016. A total of 81% of respondents said they saw no capacity issues in the last six months.
The summary also concluded that “organizations of all sizes are still not doing enough from a cyber security standpoint.” Only 31% of respondents’ clients have a proactive information program in place with capabilities in prevention, detection, containment and response/eradication, according to the summary.