UK IT leaders express dissatisfaction with cyber insurance options

A recent study by Coalition, an active insurance provider aimed at preempting digital risks, has found that IT security leaders at midsize businesses in the UK have reservations about the current cyber insurance offerings.

The survey, carried out by Opinion Matters in February 2024, sampled 500 senior cybersecurity professionals from mid-market firms throughout England, Scotland, and Wales.

The results highlighted that a substantial 87.6% of the respondents had encountered a cyber-attack either in their current or previous roles, underscoring the critical need not only for robust cybersecurity measures but also for insurance policies that can offset the costs associated with these incidents.

One of the more salient findings from the study was that 30.6% of participants found the information demands from insurers to be challenging. Meanwhile, 25% expressed concerns about a perceived lack of cybersecurity expertise among insurance providers. Moreover, only 19% reported a positive experience with cyber insurance. When it comes to budgeting for cyber defences, 43.4% admitted to having insufficient funds to provide the necessary protection against cyber threats.

Tom Draper, Coalition's UK Head of Insurance, commented on the findings: "Our results show that many IT departments currently see cyber insurance as more of a 'nice to have' and not as a key pillar in their cyber risk management strategy. The findings also suggest that businesses are underwhelmed with their options and experiences. The message coming across loud and clear is that the UK cyber insurance industry has to be better at engaging with clients."

Draper emphasised the need for integrating IT security within the domain of insurance conversations. "By bringing IT security into the insurance conversation, insurers and brokers can increase trust in cyber insurance and better demonstrate its value. Coalition's Active Cyber Insurance can fill some of the identified cybersecurity gaps through its cyber risk management platform, Coalition Control, including threat intelligence, attack surface monitoring, and third-party risk monitoring," he stated.

He also noted the role of Coalition’s comprehensive support in positively shaping client experiences. "In addition, our mid-market clients find Coalition's expertise in incident response, our onboarding calls explaining how we will support them through an incident, and our round-the-clock security support invaluable. This has to be the way forward," Draper said.

The study's demographic consisted of senior IT Security decision-makers from companies with annual turnovers ranging from GBP £100 million to GBP £1 billion. Carried out by an independent research organization, the survey aimed to shed light on current sentiments and potential gaps in the UK cyber insurance marketplace.

Launched in the UK in September 2022, Coalition provides Active Cyber Insurance to organisations through broker partnerships. This insurance model combines risk assessment, proactive protection, expert response, and comprehensive cyber coverage to help businesses better manage and mitigate digital risks.