Consumer sense of cyber threat: High concern, low confidence

January 9, 2020 / 2 min read

Two-thirds of consumers are concerned about possible cyberattacks, based on a recent Verisk survey, and nearly one in three report experiencing a threat or attack. But just 20 percent indicated they have personal cyber insurance.

The survey results suggest that consumers know they’re vulnerable to cyberattacks but don’t fully understand potential scenarios and consequences if they were the target of such an attack. Most use some type of software or third-party service to help “block” cyber threats, but few buy insurance to help protect against possible losses from such attacks.

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The consumer survey and a separate survey of personal lines insurers together made up a Verisk study that’s presented in a new white paper, Understanding the Opportunities for Personal Lines Cyber Insurance.

Finding insight and a way forward

The paper delves into insights from the surveys, exploring possible reasons for low take-up rates and how more people could be motivated to seek coverage. Among the findings and insights:

Those who’ve experienced a cyberattack are more likely to express willingness to pay for cyber coverage added to existing policies.
There’s an appetite for knowledge and education concerning cyber threats and their potential ramifications.
Half of respondents to Verisk’s insurer survey said it’s important for the industry to provide standardized personal cyber policy language for customers.

The full white paper provides greater detail on the surveys, including numerical breakdowns of responses to key questions about cyber threats and solutions. And for insurers seeking to explore this or other new markets, Verisk stands ready with expertise, data resources, and creativity spanning diverse, complex, and overlapping risks.

*Consumers were asked to rate their level of concern and confidence in detecting each of the following: bank fraud, clickbait, cyberbullying, hacking, identity theft, malware, phishing email scam, phishing phone call scam, and ransomware.