Despite the growing risk of cybercrime, most consumers remain hesitant to purchase personal cyber insurance. A new report from the Insurance Information Institute (Triple-I) and HSB revealed that three-quarters of consumers have had their personal information lost or stolen, yet 56% of insurance agents say their clients don’t value cyber insurance.
While 84% of agents see personal cyber coverage as essential, only 43% believe their clients understand its importance. These findings are troubling, after the survey revealed that 28% of consumers have had their social media accounts hacked, 23% experienced data breaches and 14% have been targeted by online attacks.
The most common cyber threats reported by customers include:
- Identity theft and fraud
- Online fraud and scams
- Computer malware and device attacks
- Exrtotion
- Online harassment
However even though 77% of agents have offered cyber policies in the past month, price and coverage concerns continue to deter consumers. Further findings revealed more than half of agents believe customers would be willing to pay up to $100 for coverage, but many remain skeptical of its necessity.
“The disconnect between the alarming rate of cybercrimes and the low adoption rate of personal cyber insurance is striking,” said CEO of Triple-I, Sean Kevelighan.
As cyber threats continue to intensify, bridging the awareness gap is crucial. Insurance professionals must emphasize the growing risks and benefits of cyber coverage before consumers find themselves victim to digital attacks.
