Middle market companies represent the best opportunity for growth of cyber risk insurance products and services – I’m convinced of it. Based on conversations with carriers, brokers, clients, and service providers, and a reading of the press, I am confident I am right.
But – I wanted to make sure.
During the early summer of 2010, we conducted a study of the opinions and experiences of senior executives of middle market U.S.-based companies, and asked them about their plans for protecting their companies against cyber risk. This study was based on in-depth interviews with 51 senior executives of middle market companies in the U.S. Middle market was defined as annual sales between $10 million and $500 million.
While we would have liked to conduct more interviews, and acknowledge that 51 is not a statistically valid sample, we wanted to get real insight into their knowledge and experience. So instead of a large sample, we went for depth.
The study focused on senior executives with responsibility for insurance purchasing. We wanted to know about their awareness of cyber risks, insurance, and remediation services.
The study results are summarized in the Executive Summary, which can be downloaded (for free) at www.betterley.com. The full study can be ordered from the same link. It is published by Betterley Risk Research, and is a separate publication from The Betterley Report.
The complete Report includes 43 charts that analyze responses to the following categories of questions:
Market Penetration and Product Awareness – 7 charts
- % of respondents that carry Cyber Risk insurance
- Reasons why they don’t buy this insurance
- Do they intend to buy it in the next 18 months?
- How they learned of Cyber Risk insurance
Opinions on Product Features – 26 charts
- Opinions about specific product features for both coverage and services
- Satisfaction with premium cost
- Willingness to pay more premium for key product features
- Satisfaction with limits and deductible options
- The value of underwriter and broker knowledge
Opinions about Cyber Risk Insurers, Brokers, and Service Providers – 8 charts
- Which insurers and brokers are insureds and prospective insureds familiar with?
- Satisfaction with current insurer? Broker?
- Which service providers are insureds and prospective insureds familiar with?
- Number of respondents that have had a claim? How satisfied are they with claims handling?
Over the next week; I’ll try to post some of our findings, but in the meantime, if you can’t wait, grab the Executive Summary.