Analysis Finds SMEs Expected to Spend More on Cyber Insurance in Next Two Years Compared to Large Enterprises
Cowbell Cyber released “The Economic Impact of Cyber Insurance,” a survey analysis focused on cyber insurance for SMEs. The Cowbell Cyber analysis is an extension of “Driving Cybersecurity Performance” — a research report published by ESI Thoughtlab — and specifically extracts data for cyber insurance buying intentions, drivers, satisfaction, limits, and disparities between SMEs (revenue <$1B) vs. large enterprises (revenue >$1B) in the United States.
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According to the ESI Thoughtlab report, which surveyed executives at 1,009 companies across 13 industries from November 2019 to January 2020, 65 percent of SMEs are planning to spend more on cyber insurance as part of their cyber resilience plan in the next two years, compared to 58 percent of large companies. The report also finds that 71 percent of SMEs have a cyber coverage limit lower than $1M and lower than total past or estimated future losses and expenses related to a cyberattack. Further, cyber coverage limits varied across industries, with the report finding that life sciences, healthcare, retail/hospitality, and telecom are severely under-covered and show the biggest gap between limit and expected losses.
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“Cyber breaches are no longer an ‘if’ scenario but rather a ‘when’ scenario. Our analysis of the survey results show that cyber insurance is becoming increasingly popular for SME organizations that want to protect their assets and accelerate the response and recovery process in the aftermath of a cyber incident,” said Isabelle Dumont, VP of Market Engagement at Cowbell Cyber. “Cyber insurance is now a necessity and not a luxury for organizations. At Cowbell Cyber, we offer clarity and flexibility in the cyber coverages offered, keeping the unique needs of each policyholder in mind.”
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