Bridging perception gaps in UK cyber insurance

In a recent study conducted by Coalition, insights into UK midsize businesses’ perceptions of cyber insurance have emerged. The study, carried out earlier this year by Opinion Matters, surveyed 500 senior cybersecurity professionals across England, Scotland, and Wales. These findings shed light on the challenges and perspectives regarding cyber insurance within this sector.

Urgency for robust measures

The study revealed that a significant “87.6% of cyber professionals had experienced a cyber-attack” in their current or past roles. This statistic underscores the critical need for robust cybersecurity measures and effective risk management strategies to combat the pervasive threat of cyber-attacks.

Barriers to implementation

Among the surveyed professionals, “30.6% felt that providing information requested by insurers was challenging,” indicating a significant hurdle in the adoption of cyber insurance policies. Additionally, “25% said insurers lacked cybersecurity expertise,” highlighting a gap in understanding between insurers’ and businesses’ specific cybersecurity needs.

Addressing misconceptions

Tom Draper, Coalition’s UK head of insurance, emphasised that many IT departments perceive cyber insurance as secondary rather than a primary pillar in their cyber risk management approach. Draper noted that “the UK cyber insurance industry has to be better at engaging with clients,” suggesting a need for improved communication and alignment of services with client expectations.

Demonstrating value

To address these challenges and improve trust in cyber insurance, Coalition advocates for integrating IT security into the insurance dialogue. Draper highlighted that by doing so, insurers and brokers can “better demonstrate [cyber insurance’s] value” and foster a collaborative approach to risk management.

Tailored solutions for resilience

Since its launch in September 2022, Coalition has tailored Active Cyber Insurance for midsize organizations, leveraging broker partnerships to offer comprehensive coverage and expert response capabilities. This approach integrates risk assessment, proactive protection, and expert incident response, positioning Coalition as a pivotal player in the evolving landscape of cyber risk management.

Necessity for tailored solutions

The study underscores the urgent need for enhanced engagement and tailored solutions within the UK cyber insurance sector. As cyber threats continue to evolve, aligning insurance offerings with the specific needs of midsize businesses is crucial. By bridging the gap between cybersecurity expertise and insurance services, industry stakeholders can enhance resilience against digital risks and support organisations’ long-term security goals nationwide.

Image: Provided by Omnia Partners.

Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.