Triple-I and HSB Report:
Addressing the personal cyber protection gap
Study uncovers agent and insured perceptions
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Education key to closing the gap
Agents and brokers know how important personal cyber insurance is to safeguard their homeowner insureds from escalating cybercrime. Homeowners, however, don’t see its value despite the threats.
That disconnect is a key finding of a study by Triple-I and HSB that surveyed retail agents of homeowners insurance to better understand why consumers are slow to adopt personal cyber products despite the known risks.
The threats are real
3 out of 4
consumers
had their personal information lost or stolen
$10k+
average payout
for a home cyber claim
880k
complaints of cybercrime
were reported to the FBI in 2023, resulting in a potential $12.5 billion in losses
An issue of understanding
84%
of agents and brokers
understand the value of personal cyber protection
43%
of agents
believe their clients share the same understanding
56%
of agents
reported that their customers don’t understand or don’t agree with the value of cyber insurance
What is really interesting is this is a challenge of unseen threats — agents see the storm, but homeowners can’t envision the damage … until it’s too late.
Agent training and consumer education vital
There is a need for ongoing education about personal cyber insurance solutions that:
- Ensures agents have the training they need to understand the nuances of the coverage and can confidently represent it to their clients
- Raises awareness among policyholders about the product, what it covers and costs, and how it can safeguard them
Consumer education, agent/broker training, and a compelling data-driven approach to selling personal cyber insurance will be essential to driving customer adoption of the product.
