Brokers and insurers have been told there needs to be a greater degree of certainty around what cyber cover can offer if they are to effectively engage with SMEs.

As brokers arrived for the annual Biba Conference in Manchester, Emma Drouineau sales associate (pic) at CyberCube said the company’s research had found a growing issue around how the industry can access and support SMEs.

“The issue is that for many clients and brokers they are currently struggling to understand their exposures and with it find the complexity of the products on offer confusing,” she explained. “It means that for many SMEs  they are struggling to understand exactly what their risks are.”

Drouineau added that a recent study by broking group Howden found that only 25% of SMEs globally have cyber cover compared to 75% of larger businesses with the SME figure falling to.  14% in the UK.

“Smaller companies have lacked awareness of the risks they face and are confused by the complexity of the products they are offered. The big challenge is that if helping SMEs recognise they face risks and also the products available,” she explained.

Drouineau added insurer Hiscox has released data  that found that 49% of SMEs experienced a cyber-attack and of those who fell victim 60% were forced to close the business.

“SMEs have a low awareness of the risks they face and unlike their larger peers they do not have the capacity to put staff through cyber specialty training.

“In terms of the threats they are seen as vulnerable by criminals to attacks such as phishing and ransomware. They can often not be proactive when it comes to ensuring their systems and that security are up to date.”

She said it created an opportunity for brokers.

“They have the ability to support and guide clients and SMEs around the risks and what the consequences could be. They can then explain the appropriate amount of coverage.

“They can also prepare companies for the buying process and help mitigate the risks and help SMEs to monitor their  systems and our security.”

Drouineau added: “I think insurers could introduce policies which are specifically designed for SMEs. We can already see some  movement in 2025 .

“They need to be tailored for SAMEs their risks and how they operate. There is a recognition that this needs to be  done.”

She continued: “We are seeing more granular analytics which will win only enhance the understanding of thew risks faced by SMEs and compared to those larger entities.”

Drouineau said the use of technology could speed and simplify the quote and bind process and use APIs to deliver greater data on the policyholder and their risks to the underwriting platforms.

“It is about accessing the right analytics and technology to provide insights  for the clients to understand the exposures and with it the appropriate coverage.”