Every day, we hear about big cyberattacks hitting companies, but what about hackers targeting people at home? As more of our daily lives and devices connect to the internet, personal cybercrime is on the rise. Many folks might not even realize the risks they face or what they can do to protect themselves.
A recent report from the Insurance Information Institute (Triple-I) and Hartford Steam Boiler (HSB), a Munich Re company, reveals that 75% of consumers have had their personal information lost or stolen. On top of that, nearly one in three people have experienced a social media account being hacked. When it comes to cyber insurance claims related to homes, the average payout is over $10,000.
The dangers aren’t just about financial information and identity theft anymore. Any device connected to the internet—like smart doorbells, thermostats, or security cameras—can be hacked. These devices could be infected with malicious software, giving criminals access to personal details. The rise of deepfake technology and artificial intelligence only makes the problem worse.
Neil Rekhi, a personal cyber insurance expert at HSB, points out that as our digital lives get more connected, cyber threats keep growing faster. He says personal cyber insurance is a helpful way to reduce these risks.
Cyber insurance for individuals is quickly growing in popularity, but there’s still a big gap in understanding. While most insurance agents and brokers see the value of personal cyber coverage, less than half think their clients do. Even though many agents have talked to clients about this insurance recently, more than half say their clients don’t really get why it’s important. Cost and how much the insurance covers are top concerns for buyers.
Some agents are not fully confident when it comes to explaining or selling personal cyber insurance either. Dale Porfilio, Chief Insurance Officer at Triple-I, says this gap between what agents know and what consumers understand needs to change. He encourages agents to get more comfortable discussing cyber risks and insurance details with their clients.
The report suggests that better-educated agents can help people understand how to spot scams and why this kind of insurance matters. That way, people can reduce their chances of falling victim and have protection if something goes wrong.
With cyber threats creeping into our homes and devices, it’s clear that personal cyber insurance is becoming an important safety net. But it’s up to insurance agents to help people recognize the risks and take steps to protect themselves.