I talk a lot about cyber security on this show – I wish I didn’t have to, to be fair – and so I want to highlight some specific data from AdvisorSmith about the cyber insurance market itself.
Surprisingly to me, in a survey of small business owners and managers, 64 percent are unfamiliar with cyber insurance, 25 percent don’t know what it is, and 39 percent are unsure of what it covers. Slightly less than 20 percent know about cyber insurance but have no plans to buy a policy.
Seventeen percent of the respondents carry some form of cyber insurance coverage, but more than seven in 10 purchased policies only after hearing about or being victimized by a cyberattack.
Why do we care?
With as much as I talk about cyber breaches and cyber insurance, I would have guessed the market penetration was higher. That ignores the 64 percent completely unaware of it. I shouldn’t be surprised – with awareness of cyber security far too low, and technical solutions awareness low, there is some sad comfort in knowing the insurance industry lacks awareness here too. Misery loves company.
It does speak to the combined approach I mentioned yesterday. Tech plus insurance solutions feel like that peanut butter and jelly combination. Bring that financial incentive and protection into the technology one for success.