Challenges in Cyber Insurance for SMEs Highlighted at Industry Panel

• •SMEs are aware of cyber risks but struggle to purchase adequate insurance.
• •Insurance agents often lack the expertise to sell cyber insurance effectively.
• •Current cyber insurance products may not provide sufficient coverage for SMEs.

At the NetDiligence Cyber Risk Summit, experts discussed the difficulties small- and mid-sized businesses (SMEs) face in purchasing adequate cyber insurance. Despite increased awareness of cyber risks, SMEs struggle to understand the coverage options available, leading to inadequate protection. Erin Burns from CRC Group noted that many insurance agents lack the expertise to effectively communicate the consequences of cyber incidents to clients. Jamie Schibuck from Arch Insurance pointed out that the current offerings often consist of 'watered down' products that do not provide robust coverage. The panel suggested that simpler products with clearer terminology could enhance understanding and sales. Additionally, there is a call for quicker reimbursement processes to support SMEs during incidents. The overall sentiment indicates a significant gap between awareness of cyber risks and actionable insurance solutions.