Brokers attending the British Insurance Brokers Association’s (BIBA) annual conference have been told it is vital that they work in partnership with underwriters and clients to close the UK’s cyber protection gap.

Over 15,000 delegates were in Manchester for the event, and while supply chain and geopolitical risks have occupied much of the agenda one leading underwriter said the cyber threat has far from gone away.

Casper Stops, cyber underwriting manager at Aviva, told Emerging Risks the insurer was speaking with brokers to look to new partnerships in an effort to push cyber risk higher up the agenda.

“Last year we saw a number of high-profile cyber incidents include Jaguar Land Rover,” he explained. “What is a concern is that some middle market companies will take a view that they are simply too small to be of interest to cyber criminals when it comes to events and attacks.

“However, we do see ransomware and threat actor events in a constant basis. Our message is from the evidence we have seen SMEs  are being targeted.”

Stops added: “We do see businesses who are doing a good job in increasing their cyber security and the perimeter of the organisations, although we well always say they can do more. However, it is the nature of business that there is a growing reliance on external services providers in areas such as IT. It means that events and attacks down the supply chain can often then impact those up the chain, and third-party cyber security is difficult to manage.”

Stops further said: “Businesses are more aware of the threats and the benefits of cyber insurance. We estimate that only 10%-15% of businesses have cover. It creates a huge opportunity, but it is also a significant gap. To get insurance a company will have to have a level of cyber maturity.”

For many businesses, it is a question of trying to get clarity from a very crowded cyber security sector in the face of changing threats.

“Middle market businesses have limits in terms of their time, finances and resources,” he explained. “For that reason, the cyber security process can be daunting. we are happy to help our clients to look at the options and advice then on how they can get the maximum benefit from their resources which can fit their needs.

“Clients are receptive to change in terms of how can they do better when it comes to their cyber resilience.”

Stops said as trusted advisers brokers play a key role in the industry’s efforts to look to increase the percentage of businesses which will take out cyber cover.

“Our broker partners are key to what we are seeking to achieve,” he added. “We speak to our brokers and for some there is a concern that they do not have the knowledge to discuss the options with their clients. Last year we undertook an extensive education plan for brokers, and we continue to work with brokers to support their ability to explain the risks and the solutions to their clients.

“The risks are real and we need as an industry to ensure we are explaining this to the client.”

Aviva’s sizable presence at the conference was under the banner of “unstoppable together” with the message that insurers and brokers need to work closer to ensure the best outcomes for their clients.

“In a world where risks are changing as are exposures, we seek the need for greater cooperation between underwriters and brokers to support clients and that includes around cyber risks,” added Stops.