More SMBs Seek Cyber Insurance As Market Surges

The cyber insurance market for SMBs grew by an average of 69 percent per quarter over the past year, according to the results of a recent study from the online cyber insurance marketplace CyberPolicy.

The study also found that customers are requesting higher insurance limits, with fully 90 percent of SMBs buying policies with coverage limits between $1 million and $5 million.

At the same time, premiums are decreasing. In April of 2017, the average monthly premium for a $1 million limit policy was $271 per month. In June of 2018, a similar policy with more comprehensive coverage averaged just $77 per month.

Key factors driving the cyber insurance market, according to the report, are as follows:

  • Increased accessibility of SMBs to shop for and purchase cyber insurance
  • Customized cyber policies making cyber insurance more affordable
  • Contractual requirements from the enterprise level trickling down to third party vendors
  • Passing of government regulations at the state and federal levels

Growing Requirements

Notably, the proportion of SMBs citing compliance requirements as a motivating factor in purchasing cyber insurance grew by an average of 39 percent each quarter over the past year.

And over the coming year, the report predicts, large enterprises will lead the charge on mandating cyber insurance for small businesses.

To read the full article, head over to Small Business Computing.

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