This study from Coalition highlights one crucial point; people running a business have read the T&Cs and exclusions in many cyber policies and decided there is too much jargon, too many technical questions and too many get-out clauses for the insurer.
What people need is help after an incident, plus financial losses made good. What the industry is generally offering is something akin to a cyber audit, (which the customer pays for) plus demands to constantly upskill staff and tick certain boxes – or claims will not be paid. The harsh truth is that insurance brands themselves are not immune to cyber attacks, so lecturing other businesses on how to prevent attacks isn’t the smarterst sales strategy in the book.
The arguments during Covid in the hospitality sector also showed how a breakdown of trust between client and insurance brand can lead to litigation. People thought they were covered, but in some cases they were not – allegedly. Business people need to be certain that the policy is a contract that will pay out, if the worst happens. That needs to be spelled out front and centre in any cyber insurance policy schedule.
Here’s the word;
A new study from Coalition, the world’s first Active Insurance provider designed to prevent digital risk before it strikes, revealed many IT security leaders at midsize businesses in the UK currently report being wary about cyber insurance.
Conducted earlier this year, the survey of 500 senior cybersecurity professionals working at mid-market firms across England, Scotland, and Wales found that 87.6% of cyber professionals had experienced a cyber-attack in either their current or former roles, demonstrating not only the broad need for cybersecurity investment, but also for cyber insurance policies to help transfer the cost of these cyber-attacks.
Asked specifically about their views on cyber insurance, 30.6% of respondents felt that providing the information requested by insurers was challenging, while 25% said insurers lacked cybersecurity expertise. Only one in five (19%) of those surveys reported that their company had a positive experience with cyber insurance. Regarding expenditure on cyber defences, 43.4% of those surveyed reported they had insufficient budget to provide adequate protection against cyber threats.
Tom Draper, Coalition’s UK Head of Insurance, said: “Our results show that many IT departments currently see cyber insurance as more of a ‘nice to have’ and not as a key pillar in their cyber risk management strategy. The findings also suggest that businesses are underwhelmed with their options and experiences. The message coming across loud and clear is that the UK cyber insurance industry has to be better at engaging with clients.
ONBOARDING AND SUPPORT
By bringing IT security into the insurance conversation, insurers and brokers can increase trust in cyber insurance and better demonstrate its value. Coalition’s Active Cyber Insurance can fill some of the identified cybersecurity gaps through its cyber risk management platform, Coalition Control®, including threat intelligence, attack surface monitoring, and third-party risk monitoring. In addition, our mid-market clients find Coalition’s expertise in incident response, our onboarding calls explaining how we will support them through an incident, and our round-the-clock security support invaluable. This has to be the way forward.”
Coalition launched in the UK in September 2022, providing Active Cyber Insurance to organisations with £0–£1bn turnover via broker partners. The firm’s Active Insurance is the first cyber defence to bring together risk assessment, proactive protection, expert response, and comprehensive cyber coverage, helping organisations identify, mitigate, and respond to digital risks.
The independent research organisation Opinion Matters conducted Coalition’s study in February 2024. The study sampled 500 senior-level IT Security decision-makers working for midsize companies with annual turnover of £100m–£1bn.
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