Sberbank : Demand for cyber risk insurance up 3.5 times among small and micro-sized businesses

In the first half of 2021, 1,100 small and micro-sized businesses signed cyber risk insurance contracts with Sberbank subsidiary Sberbank insurance, which is a 3.5-fold increase y-o-y and twice as much as in 12M20. Sberbank insurance has analyzed these businesses' demand for cyber risk insurance ahead of Sber and BI.ZONE's annual Cyber Polygon.

Cyber risk policies were taken out by businesses located in the Moscow region (Moscow and Moscow Region, 36% of all policies), Primorye Territory (10%), and Krasnodar Territory (6%).

The World Economic Forum's Global Risks Report 2021 reads that cybersecurity failure is a top five risk businesses have been facing in recent years, following infectious diseases, the economic meltdown, and extreme weather. According to Group IB, the number of cyber-attacks on critical information infrastructure in Russia tripled in 1H21 since 12M19. According to Sber estimates, the economy of Russia lost RUB 2.5 tn to cyber-attacks in 2019.

Cyber risk protection programs Sberbank insurance offers will protect a business in case of an unsanctioned debiting of funds from an account or a halt of operations after a cyber-attack. The company will compensate you for the losses incurred within the insurance limits. At the same time, the price of an insurance policy that can shield you against a variety of cyber risks is abysmally small compared to the potential losses a company would incur amid a cyber attack.

Cyber risks are becoming more real not only due to the organic growth in the use of digital solutions, but also due to the consequences of the coronavirus pandemic. Because of it, many enterprises have switched to a remote mode of operation and remote channels of interaction with customers. Against the background of the associated increase in cybercrime, the demand for cyber risk insurance is also going up. According to our estimates, this trend will be sustained in the coming years, and we hope that protection against these risks will become a common practice for Russian businesses in the future.

Vitaly Pavlovsky

Director, Corporate Insurance Directorate, Sberbank insurance

Sberbank insurance offers several cyber security programs that small and micro-sized businesses can choose from, with coverage between RUB 500,000 and RUB 10 mn. Depending on the insured value, prices start from RUB 4,300. A policy provides insurance for software, corporate e-mail, websites, cloud services, and data bases.

In 2021, nearly half of small and micro-sized businesses insured their cyber risks for RUB 1 mn, 35% chose the coverage of RUB 500,000, and 15% went for RUB 1 mn+. You can take out a cyber risk insurance policy at any Sberbank branch.