Almost 40% of Singapore SMBs not considering, undecided on cyber insurance

Thirty-nine percent of small and midsize businesses in Singapore are not considering or remain undecided about getting cyber insurance, a QBE Insurance Group study found.

Of that figure, around half say that their reasoning stems from the unlikelihood of them experiencing cybersecurity issues. More than half (54%), on the other hand, said that their sensitive or personal data are not stored online, hence foregoing the need for cyber insurance.

Despite the significant percentage of SMBs’ lack of eagerness for cyber protection, 97% of the 416 decision-makers polled by the study said that they were aware of potential cyber risks to their business. Of this figure, 21% expressed concerns about data protection and security, with 38% saying that they were affected by cyber incidents last year.

Nine percent said that they operated without any insurance for cyber risks.

Digitalization still of great interest to many

Regardless of the lack of enthusiasm for cyber protection, digitalization efforts still remained of great interest to many, with 66% of respondents embarking on their own digital transformations in 2022. The study further found that 34% said that they would continue to invest in technologies to reach more customers. Two factions of 32% each would digitalize to grow their business and heighten productivity, respectively.

Given their smaller capitals, 29% of SMBs cited the high cost of investment as a ceiling in their efforts to digitalize. Around a quarter (27%) attributed the barrier to a lack of financing, while the lack of digital skills was the cause for 24%. Respondents who were worried about potential disruptions to their business stood at 23%, while complexities in digital technologies were the reason for 21%. Another 21% saw ensuring data protection and security as a barrier in their digital transformation efforts.