As the Canadian cyber crime industry grows in scale, and the frequency of cyber insurance losses continues to soar, ransomware remains at the forefront of the issues facing the cyber community. On top of that, a continuing hardening market is challenging brokers to work harder to secure adequate cover for their clients against rising rates.
It's clear that the Canadian cyber insurance industry is moving at speed, with some industries showing particularly heightened exposures. Nelson explains, "Public sector, education, and non-for-profits are typically assumed to be the largest at risk - and it's true... But this also applies to retail, financial institutions and healthcare. However, the data in the last year points squarely at professional service firms, especially small law firms and financial services."
This naturally creates an opportunity for brokers to step up and start selling to the "85% of Canadian companies that aren't currently purchasing affirmative, stand-alone cyber cover" adds Nelson.
Small companies consistently fall victim to ransomware attacks. They're less likely to have dedicated security staff and more likely to have network structures with simple access policies that aren't well maintained. Lindsey Nelson, Cyber Development Leader
So, what else can cyber insurance providers and brokers do to help their clients understand their sector's vulnerabilities? What cyber trends and threats do brokers need to be on top of this year? What key points should brokers stress when speaking to a client about these cyber threats?
For the answers to these questions and more – and for other great insights from Nelson and others – download The Insurance Business 2021 Cyber Insights report today.
