As cyber threats continue to evolve and escalate, a new report reveals a troubling disconnect between the growing risks individuals face online and the low adoption of personal cyber insurance. According to Addressing the Personal Cyber Protection Gap, a joint study by the Insurance Information Institute (Triple-I) and HSB, most consumers remain uninsured against cybercrime—even as attacks become more frequent and damaging.
Alarming Exposure, Limited Protection
The findings paint a clear picture: three-quarters of consumers have experienced some form of cybercrime. Specific incidents include:
- 28% of consumers reporting social media account hacks
- 23% compromised in a data breach
- 14% suffering a direct online attack
Yet despite this widespread exposure, a majority of consumers still lack coverage. One major reason? A disconnect between insurance agents and their clients.
The Value Misunderstanding
The survey found that 84% of agents understand the importance of personal cyber insurance. However, only 43% believe their clients share that understanding. In fact, 56% of agents say their customers either don’t understand or don’t agree with the value proposition at all.
“This is a challenge of the unseen threats – insurance agents see the storm, but homeowners can’t envision the damage until it’s too late,” said Sean Kevelighan, CEO of Triple-I.
What Worries Consumers
When consumers do express concern about cyber threats, the top risks they report include:
- Identity theft and fraud
- Online scams and fraud
- Malware attacks on devices
- Extortion and cyber blackmail
- Online harassment
Despite these concerns, customer adoption remains low even when agents actively promote the coverage. In the past month, 77% of agents surveyed had presented personal lines cyber insurance to their clients, yet sales still lag.
Pricing and Education Are Key
Cost appears to be a factor. While over 50% of agents believe customers would pay up to $100 for personal cyber coverage, clients are more sensitive to the pricing and breadth of coverage than agents might expect. Seventy-one percent of agents cited these as the most important factors influencing their clients’ decisions.
James Hajjar, Chief Product and Risk Officer at HSB, emphasized the urgency of awareness: “The disconnect between the alarming rate of cybercrimes and the low adoption rate of personal cyber insurance is striking.”
A Call to Action for the Insurance Industry
The report positions this gap as a clear opportunity for the insurance industry. Building awareness, improving agent education, and adopting a more data-driven, consumer-centric approach are seen as essential steps to increasing adoption.
“Personal cyber coverage is still a very new and different product,” said Dale Porfilio, Chief Insurance Officer at Triple-I. “This is a call to action for insurance professionals to better communicate these perils and how insurance can help.”
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