The rise in remote working on the back of the coronavirus pandemic and subsequent spike in cyber attacks on SMEs will further drive uptake of cyber insurance, according to analysts at GlobalData. The firm’s latest thematic research on cyber insurance highlights that the purchase of cyber policies among UK SMEs has increased considerably since 2015.

Analyst at GlobalData, Jazmin Chong, said uptake of cyber insurance uptake has been the most impactful among micro businesses, with a 300% increase between 2016 and 2019 to reach 17.8%.

"This huge increase is due to the very low proportion of micro businesses that held cyber insurance in the past," she explained. "However, small and medium businesses have also recorded notable rises. More than 50% of medium enterprises now hold cyber insurance, highlighting the growing awareness around the importance of protection against cyber incidents among larger-sized businesses. Meanwhile, 40% of small enterprises hold cyber insurance as of 2019.

“The pandemic is bound to accelerate the market. GlobalData expects a further increase in cyber insurance, not only because of the cyber risks associated with employees working from home, but also because the pandemic has further entrenched companies’ heavy reliance on technology to fulfil day to day operations."

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