MALVERN, PA — A recent report by the Insurance Information Institute (Triple-I) and HSB sheds light on a persistent gap in understanding between insurance agents and consumers regarding personal cyber insurance. Despite rising cyber threats, adoption of this coverage remains low as many consumers struggle to grasp its value.
The report, Addressing the Personal Cyber Protection Gap, highlights increasing risks to personal data, with three-quarters of consumers having experienced some form of cybercrime. According to the findings, 28% of consumers have had social media accounts hacked, 23% have faced data breaches, and 14% have been victims of online attacks.
“Consumers are living more digital lives, but as these lifestyles evolve, so do the risks,” said James Hajjar, chief product and risk officer for HSB. “The pace of personal cyber threats is increasing, and personal cyber insurance is one way to protect against these risks.”
While 84% of insurance agents understand the value of personal cyber insurance, only 43% believe their clients share the same awareness. Though most agents are actively presenting coverage, customer adoption remains limited.
The barriers to purchase may lie in education. “This is a challenge of the unseen threats,” said Sean Kevelighan, CEO of Triple-I. “Agents see the storm, but homeowners can’t envision the damage until it’s too late.” The report underscores the need for better consumer outreach and training for agents to bridge the knowledge gap.
Key survey findings also show that 71% of agents identify pricing and coverage options as top client considerations, and over half believe consumers would be willing to pay up to $100 for cyber insurance. Yet, awareness of its benefits remains a critical hurdle.
“The disconnect between the alarming rate of cybercrimes and the low adoption rate of personal cyber insurance is striking,” Hajjar added. “It’s an opportunity to build awareness and better educate customers.”
With the growing prevalence of cyber risks, the report calls for the insurance industry to take a “data-driven approach” to help consumers understand the critical role cyber insurance can play in protecting their digital lives.
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