SAN FRANCISCO, CA, October. 10, 2018" CyberPolicy, the world's first online cyber insurance marketplace, today released new findings on the state of cyber insurance within the small and medium-sized business (SMB) market. Once reserved only for large enterprises with ample capital, cyber insurance has been experiencing rapid growth across SMBs over the past year, with the highest quarterly growth being 150 percent and averaging approximately 69 percent per quarter.
Greater accessibility, affordability and compliance requirements are largely responsible for the increased adoption of SMB cyber insurance. Furthermore, with SMBs emerging as primary cyberattack targets, more organizations are recognizing the importance of implementing cyber contingency plans and cyber insurance to protect their critical business data.
Additional report findings include:
- SMBs are demanding higher cyber insurance limits and extended coverage. More CyberPolicy customers are also requesting higher insurance limits, with 90 percent of SMBs purchasing policies with coverage limits between $1 and $5 million.
- Cyber insurance is a crucial component for third-party vendor relationships. 46 percent of SMBs cite contractual requirements as being the main reason for buying cyber insurance.
- Digital innovation and a growing customer base are driving a decrease in cyber insurance premiums. In April 2017, the average monthly premium for a $1 million limit policy was $271 per month. In June 2018, the same $1 million policy limit, but with more comprehensive coverage, went for nearly $200 less per month ($77/month).
- New SMB cyber insurance shoppers are driving market growth. First-time cyber insurance shoppers are on the rise among SMB owners, experiencing a quarterly growth of 34 percent over the last year. In Q2 2018, 30 percent of CoverHound's commercial insurance shoppers purchased cyber coverage compared to just 12 percent one year ago.
- Repeat SMB cyber insurance policy holders are increasing. The number of SMB owners that renewed their cyber insurance policy increased over the past year, with a quarterly growth rate of 69 percent.
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