The pandemic caused a seismic shift to virtual business interactions, creating a hunting ground for cybercriminals looking to take advantage of system vulnerabilities.
Despite growing awareness around cyber threats, Nationwide’s Agent Authority survey indicates that many consumers and businesses are dangerously underprepared to defend against evolving cyber risks. That is more alarming when considering half of cyberattacks are aimed at small businesses, but only 17% of small-business owners reported having cyber coverage in place. On the contrary, 71% of middle-market business owners purchased cyber insurance.
Related: What has COVID-19 taught us about cybersecurity?
The survey of 2,600 U.S. independent insurance agents, consumers, and business clients also reveals that consumers have limited knowledge of cyber threats, with two in five consumers lacking adequate knowledge of common risks. As IoT devices become more ubiquitous across the U.S., consumers need to understand possible cyber exposures.
“Our survey highlights concerning vulnerabilities for consumers and small-business owners… But regardless of the type of client, now is an important time for insurance agents to talk to their customers about cybersecurity solutions and best practices,” Catherine Rudow, vice president of cyber insurance for Nationwide, said in a statement.
Check out the below infographic for more cyber insurance insights from Nationwide’s Agent Authority survey.