Insurance Products

Cyber cover shifts into personal lines amid rising interest 

Cyber insurance is set to shift from commercial to personal lines, as one in five individuals are reportedly interested in purchasing a cyber insurance policy, according to GlobalData’s 2020 UK Insurance Consumer Survey.

The personal cyber insurance market is currently targeted towards high net-worth individuals, with cover often sold alongside or as an add-on to home insurance

According to GlobalData, the “considerable” number of customers interested in this type of cover may change this, particularly as 58% have a household income of less than £50,000.

It noted that insurer Chubb is “well-placed” to capitalise on the growing market, after it launched a standalone personal cyber insurance policy for UK consumers in October 2020. 

Elements of personal cyber insurance cover have already been developed and offered alongside its home policies, helping to “cement Chubb as an early developer of standalone protection for the mass market”.

Daniel Pearce, senior insurance analyst at GlobalData, said: “The need for cyber insurance policies has long been identified in the commercial space, where reliance on technology for day-to-day business activities has grown at an exponential rate. 

“However, individuals have also become increasingly dependent on technology. With their exposure to cyber risks growing, the personal cyber insurance market is burgeoning.”

He added: “Providers should not look to exclusively offer personal cyber insurance policies as standalone products. GlobalData research indicates that 71% of those who are interested in purchasing a cyber insurance product already hold home insurance cover. 

“With the business case for selling cyber insurance products alongside or as add-ons to home insurance already established in the HNW market, providers should not rule this out as a means of reaching out to their existing customer base.”

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