NEW YORK, Oct. 17, 2024 /PRNewswire/ -- QBE North America, in partnership with insurtech provider Zywave, today announced the release of its 2024 Cyber Insurance Report, exploring cyber insurance adoption and the effectiveness of risk management strategies. The report highlights the growing importance of cyber insurance in safeguarding business operations and identifies key opportunities for improving policy utilization and communication.
(PRNewsfoto/QBE North America)
"The survey findings highlight the critical role cyber insurance plays in today's business landscape, but they also reveal significant gaps in how these policies are utilized," said Serene Davis, Global Head of Cyber, QBE. "Our industry needs to close these gaps by improving engagement and helping businesses fully leverage their cyber insurance to better protect against and respond to evolving threats."
The survey of risk professionals and insurance buyers with primarily large organizations (nearly 50% of respondents had revenues exceeding $1 billion), revealed the following:
Market growth: Cyber insurance has transitioned from a niche offering to a standard part of risk management strategies, especially among large companies. More than 80% of respondents carry some form of cyber insurance. A key driver of this growth is the high rate of cyber incidents with more than 60% of respondents experiencing a cyber event.
Value and core benefits: The vast majority of survey respondents identified risk transfer as the primary benefit of cyber insurance, with an insurer's breach response services (83%) and incident response planning and support (73%) not far behind. The price of a cyber insurance policy is less of a concern than in the past. The cost of cybersecurity systems, services and the availability of qualified IT staff are cited as more pressing challenges in managing cyber risks than the cost of cyber insurance.
Overlooking value-added services: Only 40% of respondents utilize additional risk management services provided as part of the cyber policy offering, which often includes workshops, security assessments and network scanning resources. Fifty percent of respondents were aware of these services which suggests that awareness is a key factor in respondents taking advantage of these services.
Potential for broader C-suite engagement: At present, insurers and brokers engage in discussions primarily with corporate risk managers, with 72% of respondents citing the role as cyber risk purchasing decision-maker. Fewer than four in ten Chief Information Security Officers, by contrast, are involved in purchasing decisions, despite their primary role leading cybersecurity.
"Businesses need greater awareness of the value-added risk management services available through their policies," said Dominic Keller, Global Head of Cyber Services, QBE. "There is a clear need for insurance partners to help their clients fully understand how these services can strengthen their cyber resilience."
Survey Methodology The QBE Survey was conducted by Zywave among 156 risk professionals and insurance buyers with annual revenues exceeding $1B USD, between June and July 2024, using an email invitation and an online survey. Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 4.4 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.
About QBE QBE North America is a global insurance leader helping customers solve unique risks, so they can stay focused on their future. Part of QBE Insurance Group Limited, QBE North America reported Gross Written Premiums in 2023 of $7.6 billion. QBE Insurance Group's results can be found at qbe.com. Headquartered in Sydney, Australia, QBE operates out of 27 countries around the globe, with a presence in every key insurance market. The North America division, headquartered in New York, conducts business primarily through its insurance company subsidiaries. The actual terms and conditions of any insurance coverage are subject to the language of the policies as issued. Additional information can be found at qbe.com/us or follow QBE North America on LinkedIn, Facebook and Instagram.
About Zywave Zywave leads the insurtech industry, powering the modern insurance lifecycle while fostering connections between innovative agents and brokers, insurers, and MGAs. Zywave's customizable, all-in-one platform accelerates digitalization, distribution, and profitability to help insurance organizations meet their specific growth goals. More than 15,000 insurers, MGAs, agencies, and brokerages worldwide—including all of the top 100 U.S. insurance brokerages—use Zywave solutions to increase efficiency, make better informed business decisions, and fuel organic growth. Additional information can be found at www.zywave.com.
