A poll of UK brokers conducted by specialist insurer CFC showed that IT departments are the number one obstacle to overcome when it comes to selling cyber policies.

Almost half (49%) said that they had encountered a challenge from their client’s IT lead or department, stating that they “didn’t need” cyber insurance.

“There’s a long-held misperception amongst IT professionals that cyber insurers are pitching insurance as a replacement for security controls, when in fact the reality is vastly different,” said Philippa Berry, cyber product leader at CFC. “Despite best efforts, cyber attacks can still happen. Just as putting locks on your doors doesn’t negate the need for property insurance, strong IT security measures don’t negate the value of cyber insurance. A good cyber policy will not only transfer the financial risk associated with a cyber event, which can be substantial, but also offers an additional layer of proactive services to help prevent an attack from happening in the first place.”

Brokers also cited cost as a major hurdle to selling cover, saying that clients felt cyber insurance was too expensive.

“Price is always an issue, but the cost of a cyber claim is so much greater,” Berry added. “Ultimately cyber crime is costing UK businesses of all sizes, but in particular smaller organisations, billions of pounds each year. Rather than being mutually exclusive, IT departments and proactive cyber insurers like CFC can work hand-in-hand to afford businesses the best possible protection against cyber crime at a price that reflects the necessary level of protection and support.”

Some 568 brokers tuned in to CFC’s Selling Cyber in 2023 webinar, and 277 responded to the poll conducted during the event.

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