- Newslink Global Insurance Trends-The Week
- ABI writes to Justice Secretary over Ogden rate change
- UK financial regulators to discuss a plan to improve regulatory coordination
- Munich Re expects around E1bn earnings for the half year-no change in 2019 target
- Juniper Research looks at Robotic Process Automation(RPA) progress in the Insurance and Telecoms markets
- Capgemini expanding its AI capabilities with Microsoft
- FM Global invests $1m in AI-based InsurTech RiskGenius looking to automate underwriting processes expired
- Dinghy Freelancer Insurance comments on research indicating that the number of people in the UK working through an online platform has doubled from 4.7% to 9.6% in the last three years expired
- MAPFRE MSV Life chooses Sapiens solutions expired
- Novidea announces two appointments expired
- ABI supports consultation into how to make young drivers safer expired
- Geneva Association reports on its recent 2019 Climate Change Forum held in London 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)