As digital becomes the norm in business and cybersecurity threats proliferate, the market for cyber insurance is growing at a massive clip. While it was once thought to only be available for large enterprises, cyber insurance is now the fastest-growing insurance market for SMBs, according to new research from CyberPolicy.
Average quarterly growth for cyber insurance among SMBs has been 69% over the past year, according to a press release announcing the findings. However, its highest quarterly growth rate was tagged at 150%.
Nearly half of all cyberattacks now target SMBs, so it makes sense that small business owners would be considering cyber insurance. Roughly 90% of SMBs are buying policies with coverage limits from $1-$5 million, the release said.
SEE: Guidelines for building security policies (Tech Pro Research)
Cybersecurity threats are nothing new, but expanding enterprise relationships are introducing new threat vectors. As such, 46% of SMBs said that requirements in vendor contracts are their main reason for looking into cyber insurance, according to the release.
The cost for these policies is also dropping dramatically as more buyers hit the market. In April 2017 the average monthly premium for a $1 million limit policy was $271 per month, the release said. Fast forward to June 2018, and that average premium dropped down to $77 per month.
The number of first-time buyers has seen quarterly growth of 34% over last year, the release noted. Repeat buyers are growing too, with renewals seeing a quarterly growth rate of 69% over last year.
"With more than 30 million SMBs in the U.S., the stability of our economy depends on every business--not just big corporations--understanding that the need for cyber insurance is real," CyberPolicy CEO Keith Moore said in the release.
The big takeaways for tech leaders:
- Cybersecurity insurance is the fastest-growing insurance market for SMBs. -- CyberPolicy, 2018.
- 46% of SMBs said they bought cyber insurance to fulfill a contractual requirement with a vendor. -- CyberPolicy, 2018
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- Your 2018 guide to cyber insurance is here (ZDNet)
- Ransomware: A cheat sheet for professionals (TechRepublic)
- Cyber security: We need a better plan to deter hacker attacks says US (ZDNet)
- Why cyberinsurance can help businesses survive after an attack or data breach (TechRepublic)