Consumers need cyber insurance coverage in today’s online world

Many consumers demand cyber protection from their insurance companies. Personal cyber insurance for consumers can protect individuals from some of the consequences of cyber risks, such as loss of money and data.

What should cyber insurance cover?

However, making up for unauthorized online purchases, covering the consequences of a data breach, legal expenses and paying for material damage to devices is not cheap. Therefore, it’s in the interest of insurance companies to help prevent cyber crime in the first place, not just cover the cost of incidents.

In addition to protecting against the negative impacts of data breaches, phishing scams, online fraud and hacking attempts, cyber insurance coverage can include recovery of lost data, social media accounts and assistance by cyber security experts.

With different cyber insurance policies, consumers gain peace of mind when their insurance company has them covered from online threats. After all, becoming a victim of a cyber attack or a data breach has its emotional toll as well. In many cases, it’s not just their own safety that’s on top of consumers' minds, but the safety of their families as well.

Consumers need help staying safe online

Insurance companies can reap many benefits by helping their customers stay safe from online threats, such as identity theft. Consumers are concerned about their personal cyber security and want protection against online criminals and malware.

Unfortunately, too many find online security too complex and difficult to understand. According to F‑Secure’s consumer insights report for insurance companies, online security is too complex for 66% of consumers, while 51% are unsure if their devices are secure.

Trust in legitimate sites and other people on the internet is another concern consumers have. 69% don’t know who they should trust on the internet. And on top of that, 40% of consumers find it hard to separate legitimate online stores from malicious ones.

These numbers show clearly that online users are unaware of how to stay safe online. As a trusted provider, you can make navigating the online world easier and less risky with internet security products bundled with your insurance offering. And by doing so, you also prevent cyber insurance claims caused by incidents.

Cyber risks can be costly for both insurers and their customers

In 2022, one third of consumers were affected by cyber crime in one way or another. Nowadays consumers are more aware and worried about different types of cyber threats and their consequences. Some of these include:

• Credit card and online shopping fraud. About half of consumers are worried their financial details get stolen, for example by using an illegitimate online shop. Similarly, nearly half are afraid of getting their bank accounts hacked.
• Loss of personal data and identity theft. Half of consumers are concerned about malware and viruses that could compromise their personal data. Many are worried that a stolen identity could be used to make online purchases or take loans in their name.
• Loss of privacy. About a third of consumers are suspicious of smart home devices as they can be used to track their online behavior. Smart home devices are also potential targets for hacking. Compromised surveillance devices and devices with built-in cameras can be used to spy on the target’s home.

Cyber insurance is definitely needed more than ever with the number of threats to consumers in the digital world. The most common consequence of cyber crime is the added stress that comes with it. However, in many cases falling victim to cyber crime can have consequences that go far beyond extra stress or loss of time.

For 22% of consumers, the loss of money and data are real consequences – and the monetary losses can be substantial. 6% had more than 1000€ monetary losses as a result of being targeted by cyber criminals.

For 1% the losses were even greater. They had lost over 10 000€ to cyber crime. With much banking and shopping taking place on the internet, cyber insurance that covers losses caused by incidents is needed to make up for the risks.

Stand out of competition with cyber insurance

For most consumers, having just home insurance is no longer enough. On top of just protecting your customers’ homes, don’t forget everything that takes place in the digital world. 84% of consumers expect home insurance to contain internet security and insurance for cyber crime.

You can protect all of your customers’ digital moments by either bundling internet security together with home insurance or offering cyber care as a separate value-added service.

• Differentiate your insurance offering to cover protection in the online world. With internet security, you can stand out from competitors and become more relevant for existing customers.
• With consumers demanding online security and cyber insurance from their insurance provider, you can increase the value of your offering by expanding to the digital world.
• Customers who use online security in addition to just regular insurance products are more loyal. Increased loyalty and higher Net Promoter Scores (NPS) lead to reduced churn.
• Becoming the victim of cyber crime, such as malware infections, phishing scams and identity theft, can be costly. Save costs by reducing insurance claims by your customers.
• Protect your customers’ every digital moment and stay top-of-mind with services your customers use every day.

Expand your insurance offering with internet security

Most consumers want their insurance company to help them stay safe in the online world. 71% of consumers choose an insurance company based on whether or not they offer comprehensive protection and cyber insurance as a part of home insurance. Partner with F‑Secure to keep your customers safe from cyber risks, including malware, identity theft, and loss of sensitive data.

F‑Secure Total covers more than just an antivirus but also a VPN for private browsing and identity protection tools to minimize the damage caused by data breaches and identity theft. One Total subscription can be used to protect multiple devices and every family member. Parental controls and family rules help limit daily screen time and protect children from harmful online content.

Read more about F‑Secure’s solutions and services and get in touch.