Cyber insurance has seen a recent rise across the UK, following a spike in online sales amid the ongoing lockdown.
According to analytics group GlobalData, online sales across the entire retail industry are expected to grow at a faster rate than offline sales over the next four years, with businesses facing greater cyber risks and therefore looking to cyber insurance.
Online sales are particularly “thriving” in the grocery sector, with online sales forecast to account for 8.4% of total grocery sales in 2020, generating an additional £1.8bn more than originally predicted.
With an increased demand for deliveries, particularly amongst supermarkets, GlobalData also predicts an uptick in fleet motor and van policies, with companies expanding their existing fleets.
Yasha Kuruvilla, insurance analyst at GlobalData, said: “As online sales have become increasingly popular, businesses will face greater cyber risks.
“Retailers will hold more digital records of sensitive personal information, including payment details, than ever. According to a report from Shape Security, hackers account for more than 90% of login traffic on e-commerce websites.”
She added: “This may not translate into new policies for large retailers that are more likely to already have cyber and fleet insurance products in place. However, some SMEs have explored the online channel in order to generate some sales during the lockdown.
“With online sales increasing in popularity, it is likely that some of these SMEs will make online sales a lasting feature, opening the door for new insurance policies to be sold.”