Personal Cyber Insurance is a Growing Insurance Gap; Consumers Are Routinely Victims of Cybercrime and Yet Most Are Uninsured

For Immediate Release:
Loretta Worters, 917-208-8842, lorettaw@iii.org 

MALVERN, Pa., March 25, 2025 – Three-quarters of consumers have had their personal information lost or stolen in some form of cybercrime. Twenty-eight percent of consumers had a social media account hacked. In addition, 23% of consumers had personal information compromised in a data breach, and 14% of consumers experienced an online attack. Yet 56% of insurance agents reported that their customers don’t understand or agree with the value of cyber insurance.

Addressing the Personal Cyber Protection Gap, a new report by the Insurance Information Institute (Triple-I) and HSB, captures the results of their recent survey of insurance agents to gain a deeper understanding of their perceptions of personal cyber insurance products. 

“As digital lifestyles evolve and become more interconnected, so do the risks,” said James Hajjar, chief product and risk officer for HSB, part of Munich Re. “The pace of personal cyber threats is increasing at an accelerating rate, and personal cyber insurance is one way to protect against these increasing risks.”

The most pressing threats reported by customers to their insurance agents were:

1. Identity theft/fraud
2. Online fraud/scams
3. Computer/device and malware attacks
4. Extortion
5. Online harassment

Key Findings of the Survey

Agents perceive a gap between their understanding of the value of cyber insurance and that of their customers. While presenting the coverage at what they believe to be an attractive price, customer adoption remains low. 

• 84% of agents understand the value of personal cyber insurance, but only 43% believe their clients share the same understanding.
• A significant majority of homeowners appear to be aware of cyber threats and understand that they can significantly impact their lives, but 56% of agents reported that their customers don’t understand or don’t agree with the value of cyber insurance.
• 77% of agents have presented personal lines cyber insurance to clients at least once in the last month, yet data suggests that clients may not be purchasing the product at the same rate.
• 71% of agents report either pricing or breadth of coverage as the most important decision criteria for their clients purchasing personal cyber insurance.
• Over 50% believe clients would be willing to pay up to $100 for this important coverage.

“This is a challenge of the unseen threats – insurance agents see the storm, but homeowners can’t envision the damage until it’s too late,” said Sean Kevelighan, CEO, Triple-I. “Consumer education, agent training and a compelling, data-driven approach to selling personal cyber insurance will be essential to driving customer adoption of the product.”

Additionally, Hajjar said, "The disconnect between the alarming rate of cybercrimes and the low adoption rate of personal cyber insurance is striking. This is a clear gap and an opportunity to help build awareness about personal cyber insurance and I believe the insurance industry, including agent partners, can help amplify and tell that story more directly.”

As comfortable and knowledgeable as agents may feel about cyber insurance and its value to policyholders, personal cyber coverage is still a very new and different product from those intended to cover physical damage to homes and related property, the report states. 

Dale Porfilio, FCAS, MAAA, chief insurance officer, Triple-I, noted that the disconnect between agent/broker and consumer perceptions of personal cyber risk – and the role of insurance in addressing it – “is a call to action from insurance professionals to provide greater understanding of the perils to consumers to drive product acceptance.”

About the Insurance Information Institute (Triple-I)

Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About the Institutes

The Institutes are a global not-for-profit comprising diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes’ nearly 20 affiliated business units, people and organizations are empowered to help those in need with a focus on understanding, predicting and preventing losses to create a more resilient world.

About Hartford Steam Boiler (HSB)

HSB, part of Munich Re, is a multi-line specialty insurer and provider of inspection, risk management, and IoT technology services. HSB insurance offerings include equipment breakdown, cyber risk, specialty liability and other coverages. HSB blends its engineering expertise, technology and data to craft inventive insurance and service solutions for existing and emerging risks posed by technological change. Throughout its 150-year history, HSB’s mission has been to help clients prevent loss, advance sustainable use of energy, and build deeper relationships that benefit business, public institutions, and consumers. HSB holds A.M. Best Company’s highest financial rating, A++ (Superior). For more information, visit www.hsb.com and connect on LinkedIn, X and Facebook.