Cyber insurance is set to improve its penetration rate due to the rise in remote working, Global Data has said.
The analytics group said that the risk of cyber-attacks has grown in light of more people working from home, leaving smaller businesses vulnerable and in need of cyber insurance.
Findings from GlobalData’s ‘Thematic Research: Cyber Insurance’ report found that the uptake of cyber insurance among SMEs in the UK has “increased considerably” since 2015, reaching 18.8% of the total SME economy by 2019.
According to the group, the uptake of cyber insurance has been “the most impactful” among micro-businesses, which saw a 300% increase between 2016 and 2019, reaching 17.8%.
It said that the increase was partly due to the historically low proportion of micro-businesses that held cyber insurance in the past.
However, small and medium businesses have also recorded “notable” rises, with more than 50% of medium enterprises now holding cyber insurance.
GlobalData said that this reflects the “growing awareness” around the importance of protection against cyber incidents among larger-sized businesses.
GlobalData analyst, Jazmin Chong, said: “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.”