Our CEO and founder, Andrew Martin, shares his thoughts following a panel discussion below.
I recently joined a panel discussion at the Intelligent Insurer Cyber Risk & Insurance Innovation event on "Closing the Cyber Penetration Gap and Confronting Challenges in Growing the SME Market." The discussion provided key insights into the evolving cyber insurance landscape for SMEs and highlighted the importance of integrating cyber risk management directly into insurance offerings.
As a cyber risk solutions provider, we see firsthand the gaps in SME cyber protection. Despite their economic importance, SMEs are often overlooked when it comes to cybersecurity. As digital threats increase, insurers and risk managers must help these businesses transition from reactive to proactive cyber risk management.
Addressing the Market’s Needs: Pricing, Product, and Distribution
To grow the SME market, insurers must focus on getting pricing, product offerings, and distribution right. The good news is that, by and large, the industry is moving in the right direction—pricing is competitive, many strong products are available, and new offerings are being introduced rapidly.
So, what is the real challenge?
The primary challenge is helping SMEs understand the true value of cyber insurance and the importance of cybersecurity. For many, cyber risks are still a relatively new concept, and questions like “Why would we ever get hacked?” are common inquiries brokers must address.
This is where the "wow factor" becomes vital. Selling cyber insurance to a small business, like a farmer who thinks cyber threats won't affect them, requires more than just presenting facts and figures. To raise awareness, it’s effective to share real-world examples: “Look, someone just like you was hacked, and they lost thousands.” This approach isn’t about instilling fear; it’s about making cyber risk relatable and tangible. Similar to health, travel, or property insurance, people only recognise the importance of such coverage when they face a need for it. As an industry, our goal must be to redirect the conversation towards a proactive approach that makes cyber risk visible and urgent before an incident occurs.
The Micro-SME Market: A Call for Tailored Solutions
The panel discussion also highlighted the need to better serve micro-SMEs—businesses with fewer than 10 employees. These companies are just as vulnerable to cyber threats but often lack the resources or technical knowledge to implement robust security measures. Cyber risk software can bridge this gap by providing cost-effective tools that enable proactive monitoring and protection without requiring dedicated IT staff.
Through our insurer partnerships, we help these smaller businesses stay secure by integrating threat intelligence and monitoring tools directly into their policies, ensuring they have accessible, affordable cyber protection.
The Time to Act: Leveraging the Softer Market
The current softer commercial insurance market presents a unique opportunity for SMEs to secure cyber coverage at competitive rates. Now is the time to embed cyber risk management tools into policies, ensuring businesses benefit from affordable, proactive protection. By shifting SMEs' mindset from "cyber insurance as an afterthought" to "cyber insurance as an integral business function," we can help drive long-term adoption and resilience.
Changing the Sales Process: Selling Continuity, Not Fear
A key theme from the panel was the need to rethink how cyber insurance is sold. Fear-based selling—focusing solely on catastrophic breaches—doesn’t resonate with SMEs. Instead, insurers and vendors should emphasise business continuity and the confidence that comes from knowing they are actively preventing cyber threats.
Cyber risk software should be positioned not just as a reactive tool for responding to incidents but as an enabler of secure and confident business operations. Features like real-time monitoring, alerts, and actionable insights help businesses stay ahead of threats, reinforcing cyber insurance as a business necessity rather than a last resort.
The Future of Cyber Insurance is Proactive
Ultimately, the future of cyber insurance lies in proactive risk management. Instead of waiting until renewal time to compete on price, insurers must engage businesses throughout the year, helping them stay ahead of evolving threats.
At DynaRisk, we empower insurers to take a proactive approach by providing tools that monitor client portfolios and generate data-driven insights. This allows insurers to initiate meaningful conversations with SMEs before renewal, demonstrating value beyond policy coverage. Embedding cyber monitoring into the policy lifecycle strengthens client relationships and ensures insurers deliver the most relevant and effective protection.
Where is the Real Issue?
The panel discussion revealed that the core challenge isn’t the product or pricing—it’s the sales process. This isn’t a reflection of a lack of effort from brokers, but rather a need for better education and empowerment. Brokers must be equipped with the confidence to discuss cyber risks effectively and understand that this isn’t a one-time sale. Many SMEs don’t believe they need cyber insurance, so the industry must take a long-term approach, building ongoing discussions and awareness.
Education is key. Brokers need the knowledge and tools to have in-depth, informed conversations about cyber risks throughout the policy lifecycle—not just at renewal. By leading with education, we can help SMEs understand that cyber insurance is not just another expense but an essential safeguard for their business.
Final Thoughts
Closing the cyber penetration gap in the SME market requires collaboration between insurers, software providers, and businesses. At DynaRisk, we are committed to helping SMEs shift from reactive to proactive cyber risk management. By providing threat intelligence-driven tools, insurers can offer more than just financial protection—they can empower SMEs to actively monitor, prevent, and mitigate risks before they become costly incidents.
Are you an insurer or (re)insurer looking to elevate your commercial insurance product or programme? Find out more about our cyber risk management platform for commercial lines, Breach Defence.
Or, if you’re an insurer looking to monitor your book of commercial clients for cyber risks or a broker looking for a tool to empower you to drive new sales and have data-driven conversations about cyber, find out more about our cyber risk monitoring tool, Breach Check.