11th May 2022

Almost 30% of UK small and midsize businesses (SMBs) cancelled their cyber insurance policies in 2021 due to cost-cutting-CyberSmart comments

The price of cyber insurance is likely to still be too high for UK SMBs, according to a survey from GlobalData released last week. 38% of these businesses think it is unlikely they will be targeted in a cyber attack while 29% cancelled their policies in 2021.
In response to this, Jamie Akhtar,ceo and co-founder of CyberSmart (cybersmart.co.uk) comments “These figures make for very worrying reading. Cyber insurance is a vital last line of defence for SMEs and, with many businesses cancelling their policies, more and more are effectively gambling that they won’t be attacked. The results could be catastrophic.
That said, it’s clear something must be done to make cyber insurance more attainable for small businesses, particularly in the current environment. One possible solution is an embedded insurance approach, which focuses on implementing basic cyber hygiene, with a Saas-led approach. However, technology hasn’t been widely adopted by insurers to help mitigate risk and reduce the cost of premiums, leaving insurers to face the double bind of needing to provide competitive pricing but without limiting risk as they would other products.”

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