Coalition Study Finds Mid-market Companies ‘Underwhelmed’ by U.K. Cyber Insurance Offerings

LONDON — June 25, 2024 — A new study from Coalition, the world's first Active Insurance provider designed to prevent digital risk before it strikes, revealed many IT security leaders at midsize businesses in the U.K. currently report being wary about cyber insurance.

Conducted earlier this year, the survey of 500 senior cybersecurity professionals working at mid-market firms across England, Scotland, and Wales found that 87.6% of cyber professionals had experienced a cyber-attack in either their current or former roles, demonstrating not only the broad need for cybersecurity investment, but also for cyber insurance policies to help transfer the cost of these cyber-attacks.

Asked specifically about their views on cyber insurance, 30.6% of respondents felt that providing the information requested by insurers was challenging, while 25% said insurers lacked cybersecurity expertise. Only one in five (19%) of those surveys reported that their company had a positive experience with cyber insurance. Regarding expenditure on cyber defences, 43.4% of those surveyed reported they had insufficient budget to provide adequate protection against cyber threats.

Tom Draper, Coalition’s U.K. Head of Insurance, said: "Our results show that many IT departments currently see cyber insurance as more of a ‘nice to have’ and not as a key pillar in their cyber risk management strategy. The findings also suggest that businesses are underwhelmed with their options and experiences. The message coming across loud and clear is that the U.K. cyber insurance industry has to be better at engaging with clients. 

By bringing IT security into the insurance conversation, insurers and brokers can increase trust in cyber insurance and better demonstrate its value. Coalition’s Active Cyber Insurance can fill some of the identified cybersecurity gaps through its cyber risk management platform, Coalition Control®, including threat intelligence, attack surface monitoring, and third-party risk monitoring. In addition, our mid-market clients find Coalition’s expertise in incident response, our onboarding calls explaining how we will support them through an incident, and our round-the-clock security support invaluable. This has to be the way forward.”

Coalition launched in the U.K. in September 2022, providing Active Cyber Insurance to organisations with  £0–£1bn turnover via broker partners. The firm’s Active Insurance is the first cyber defence to bring together risk assessment, proactive protection, expert response, and comprehensive cyber coverage, helping organisations identify, mitigate, and respond to digital risks.

The independent research organisation Opinion Matters conducted Coalition’s study in February 2024. The study sampled 500 senior-level IT Security decision-makers working for midsize companies with annual turnover of £100m–£1bn.

About Coalition

Coalition is the world's first Active Insurance provider designed to help prevent digital risk before it strikes. By combining comprehensive insurance coverage and cybersecurity tools, Coalition helps businesses manage and mitigate potential cyber-attacks. Coalition offers its Active Insurance products to policyholders in the U.S., the U.K., Canada, and Australia through Coalition’s relationships with leading global insurers and cyber capacity through its own carrier, Coalition Insurance Company. Coalition also provides automated cyber alerts, expert guidance and advice, and third-party risk management to businesses worldwide through its holistic cyber risk management platform, Coalition Control®. 

The descriptions contained in this communication are for preliminary informational purposes only. Coalition is a trading name of Coalition Risk Solutions Ltd., which is an appointed representative of Davies MGA Services Limited, a company authorised and regulated by the Financial Conduct Authority (FCA), registration number 597301, to carry on insurance distribution activities. You may check this on the FCA register by visiting the FCA website www.fca.org.uk. Coalition Risk Solutions Ltd. is registered in England and Wales: company number 13036309. Registered office: 34-36 Lime Street, London, United Kingdom, EC3M 7AT. Copyright ©2024. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc.