Cyber risk is on the radar of consumers, but insurance isn't: Survey
Advisen
Cyber risk is on the radar of consumers, but insurance isn't: Survey
Cyberattacks against organizations around the world haven’t escaped the notice of consumers, many of whom worry they’re next on hackers’ lists, according to a recent Nationwide survey of consumers and insurance agents.
More than half (58%) of surveyed consumers say they’ve become more concerned about cyberattacks in recent years. The majority (61%) notice cyber events happening more often and 51% feel they protect themselves well but worry because “hackers are smart.”
Just 20% have experienced a cyberattack personally, 7% more than a survey conducted in June 2020. The most common (for 38%) type of cyber threat experienced were password hacks, followed by data breach (31%), phishing (30%) and malware (30%).
Nearly a third (31%) of respondents say they feel prepared to prevent a cyberattack and 68% haven’t even considered it.
Respondents showed strong confidence in cyber insurance to help them pick up the pieces after an event. However, most (69%) don’t carry the cover and many (43%) don’t know it exists. Over a quarter (26%) said it was too expensive.
Insurance agent respondents to the survey indicated worries about the lack of knowledge around cyber risk among their clients. Many (85%) said their clients aren’t sure what cyber insurance policies include and 82% said their clients don’t feel they’re likely to become a victim.
The survey queried agents on consumers and business customers – 82% said their clients are unaware of the risks associated with remote work or using point-of-sale devices like Square or Clover (79%). However, increased use of digital payment methods and technology reliance has insurance buyers thinking more about their risk.
"The survey data is startling," said Beth Riczko, Nationwide's president of property and casualty personal lines. "Since cyberattacks are now commonplace, it reinforces the need for consumers to make protecting their personal cyber footprint with insurance and mitigation a priority – just like they would with their home or car."
