COVID-19 has accelerated the digitalisation of various industries as individuals maintain social distancing behaviours. While the majority of cyber insurance is tailored towards protecting companies, products are being developed to cater to personal lines as well.
Interest in cyber insurance has grown due to COVID-19, especially among SMEs with more than 10 employees. 24% of small businesses (10–49 employees) and 33% of medium businesses (50–249 employees) are more likely to purchase a cyber insurance policy now than before the COVID-19 pandemic, according to GlobalData’s 2020 UK SME Insurance survey.
This is a direct result of the surge in cyberattacks due to the pandemic, with the FBI reporting that complaints about attacks received by its cyber division increased by 400% compared to pre-coronavirus levels.
As interest in commercial cyber insurance grows, insurers are setting their sights on personal insurance products as well, with a number of providers including Chubb, one of the leading cyber insurers, launching personal products. Such products typically monitor policyholders’ personal data for breaches, provide services to help retrieve and restore stolen data, and provide compensation in the event of extortion. Some products also specifically monitor connected home devices for vulnerabilities and breaches.
While personal cyber insurance has previously been marketed as an add-on to high-net-worth individuals, it is becoming more relevant to the mass market. Online retail has boomed during the COVID-19 pandemic, and more personal data is being stored online. Connected devices are also becoming more prevalent and serve as another gateway for criminals to gain access to personal data. While the uptake of these products will be low for the foreseeable future, insurers that offer these products from now will be better equipped to navigate the digital world of tomorrow.