A recent survey by QBE Insurance reveals that while small and medium enterprises (SMEs) in Singapore are becoming increasingly aware of cyber risks, over a third still lack cyber insurance coverage. The QBE Singapore SME Survey found that 68% of SMEs remain hesitant to purchase cyber insurance despite growing concerns about cybersecurity threats.
The survey also highlights a concerning decline in SMEs’ understanding of cyber risks. Only 40% of respondents consider themselves fully informed, a decrease from 47% last year. In addition, the number of businesses experiencing cyber incidents has risen slightly, from 25% to 27%.
Despite the growing risks, the adoption of cyber insurance has decreased from 38% to 36%. Among SMEs without cyber insurance, 51% expressed interest in purchasing a policy, though 15% ruled it out entirely. The reasons cited for not purchasing include the high cost of coverage, lack of adequate data storage infrastructure, and a perceived low impact of cyber events.
Shun Quan Goh, Head of Underwriting, Retail & SME at QBE Singapore, acknowledged SMEs’ reluctance but stressed the increasing necessity of risk mitigation tools. He pointed out that as businesses become more reliant on technology, cyber insurance has become an essential safeguard, even as SMEs continue to prioritize cost control.
The survey also uncovered trends in how SMEs prefer to purchase insurance. Offline channels remain dominant, though there is a noticeable shift toward using agents, which rose to 29%, while reliance on brokers and banks has decreased. Online direct purchases now account for 22%, while aggregator usage has fallen to 13%. Additionally, 73% of SMEs expressed a preference for customized insurance packages that cover multiple business risks rather than individual policies.
Ronak Shah, CEO of QBE Singapore, emphasized the continued preference for an omnichannel approach, blending human interaction with digital access. As artificial intelligence continues to reshape industries, he noted that SMEs should focus on upskilling employees to adapt to the changes, rather than simply replacing jobs.
The survey, conducted between December 2024 and January 2025, gathered responses from 600 decision-makers to assess key business risks, including the impact of AI and the digitalization of insurance.
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