- China to further open up its insurance and banking sectors to foreign investors with immediate effect
- US P&C net income and combined ratio worsen for first half but record surplus
- Insurance Europe publishes views on OECD proposals to develop a consensus solution to the taxation challenges arising from the digitalisation of the economy
- Insurance Europe publishes insight briefing that examines the liability questions raised by light electric vehicles and automated vehicles
- HDI Global and Schneider Electric to collaborate on the digital transformation of industrial/commercial insurance through data
- Munich Re Automation Solutions bringing its auto-underwriting expertise to the global mid-tier life insurance market with its SaaS solution ALLFINANZ SPARK
- Willis Towers Watson announces that RDT is to become the latest vendor to join its global Radar Live Collaboration programme expired
- ABI applaud Queen's Speech support for Pensions Dashboard expired
- Connecting capital markets to reinsurance risk was one of the key topics discussed at the recent annual IFTRIP conference expired
- MS Amlin cease writing aviation renewals/new business expired
- RenaissanceRe provisionally estimates losses from third quarter catastrophe events at around $155m expired
- Gallagher acquires Swedish broker Proinova expired
10th July 2019
Cyber insurance has potential to further consolidate broker dominance in UK says GlobalData report
Cyber insurance has potential to further consolidate broker dominance, says GlobalData
As more small and medium enterprises(SMEs) begin to digitize part or all of their business, the need for cyber cover has gained prominence more than ever before. However, less than a third of UK SMEs held cyber insurance in 2018, according to GlobalData, a leading data and analytics company.
The company’s latest report: ‘UK Commercial Insurance Distribution 2019’ reveals that brokers dominate the distribution of commercial insurance products, especially among large companies, due to their complex insurance needs. However, there is much more competition within the SME space, with the direct channel being more popular with smaller companies.
Yasha Kuruvilla, associate Insurance Analyst for GlobalData, comments “The vast majority of UK SMEs did not hold cyber insurance in 2018. Those who are regarded as experts in this field have a huge opportunity to strengthen their position in the market. Cyber insurance is a fairly new product and business owners may struggle to comprehend it. Brokers are likely to come to mind first for those wishing to purchase cover.”
In fact, 42% of SMEs purchased their cyber insurance through a broker in 2018 and a further 17% purchased via a price comparison site-often introducers for brokers for commercial products, according to GlobalData’s UK SME Insurance Survey.
Kuruvilla concludes “Cyber insurance could be the key for brokers to control the distribution of commercial insurance among not only large corporations but SMEs as well. SMEs often have simpler insurance needs, which necessitates them to go directly to the insurer and take control of the purchasing process themselves. However, most of them will struggle to purchase cyber insurance without advice, opening the door for brokers to capitalize and offer them a one stop shop for all their insurance needs.”
GlobalData Trends(21 articles)
Cyber Trends(mentioned in 814 articles in Insurance Newslink)