The restrictions brought about by the COVID-19 pandemic have forced many UK consumers to heighten their online presence, increasing their exposure to cyber risks. But despite this, most of them claim that their insurance providers fail to offer them proper coverage despite cyber insurance policies being readily available, according to a recent survey.
The study, conducted by Czech-based security software giant Avast, has found that even though more than half (57%) of respondents have experienced cybersecurity issues since the pandemic began, over half (58%) said that none of their insurers have “proactively” offered them cyber protection - despite the policies being part of their portfolio.
“People have never needed the internet more as the COVID-19 pandemic radically shifted how much more people do online,” said Nick Viney, senior vice-president and general manager at Avast. “Part of our digital freedom online is the confidence in online safety and knowing that if something does happen there are steps that can be taken to account for loss through cyber security issues. This is where insurers have a critical role to play.”
The research also revealed that more than a third, (37%) of UK consumers do not know what cyber insurance is, and, of the 63% that do, almost half (46%) were not aware of what cyber insurance protects them from.
“The findings from this survey highlight a general call for insurance providers to educate customers on the benefits of cyber insurance and a huge commercial opportunity for insurance companies to capitalise on the increased demand for protection of personal data,” Viney added.
According to the survey, the top cybersecurity concerns among UK consumers were identity theft (69%), personal data leaks (67%), ransomware attacks (64%), and stalkerware attacks (64%), all of which can be key drivers to taking up cyber insurance policies.
The study also found a gap in the market that insurers need to fill as out of the 6% of respondents who said they have cyber coverage, only 37% got it from insurance companies. The rest bought their policies from banks (24%), pension providers (19%), device manufacturers (19%), and security service providers (17%).
“These clear concerns signal a huge opportunity for insurance providers to step up and offer cyber protection policies as well as educating customers of insurance benefits, not only to help restore peace of mind, but to prevent large payouts resulting from cybercrime,” Avast said in a statement.
The research added that the potential for cyber protection and insurance being bundled together appears to be more appealing to UK consumers than a standalone offering. More than 70% of respondents said they would take up products to protect their online security – such as an antivirus software – if it was bundled with cyber insurance and 78% would purchase products that protect their privacy online – including VPNs, secure browsers, and password managers, if they came with their policies. A further 62% said they would likely pay extra for the add-on.
