Agents Must Take the Lead on Personal Cyber Coverage, Report Says

By | June 5, 2025

While major corporate cyber hacking makes the news nearly every day, what about hackers in homes?

As personal lives and residences become more intertwined with the internet, consumers are at greater risk of personal cybercrime. As risk grows, so does consumer need for protection—although they may not know it.

Expanding Exposure to Personal Cyber Crime

Three out of four consumers have had their personal information lost or stolen, and 28% of consumers have had a social media account hacked, according to the new report, “Addressing the Personal Cyber Protection Gap,” from the Insurance Information Institute (Triple-I) and Hartford Steam Boiler (HSB), a Munich Re company.

The average payout for a home cyber claim is over $10,000, the new report found.

While consumer concerns used to be limited to financial accounts and identity theft, there are now opportunities to hack wherever there is an internet-connected device, including doorbells, thermostats and security cameras. If a device is connected to the web, it can be infected with malware and collect information to be used by bad actors. The risks have become a hot topic, particularly since the rise of “deepfake” technology and generative artificial intelligence (GenAI).

“As digital lifestyles evolve and become more interconnected, so do the risks,” said Neil Rekhi, product manager, personal cyber insurance, HSB, in the report. “The pace of personal cyber threats is increasing at an accelerating rate, and personal cyber insurance is one way to protect against these increasing risks.”

The Cyber Coverage Gap

Cyber insurance is one of the fastest-growing property/casualty segments. The proliferation and potential severity of personal cyber threats has forced insurers to clarify policy coverage and exclusions, improve risk managers’ understanding of product value, and better manage costs and rate stability. While 84% of the agents and brokers surveyed said they understand the value of personal cyber insurance, only 43% believe their clients share the same understanding.

The majority of agents (77%) say they have presented personal lines cyber insurance to clients at least once in the last money but 56% of agents report that clients don’t understand or see the value of cyber insurance. Most agents (71%) said the price and breadth of coverage were clients’ most important criteria for purchasing personal cyber insurance.

While most agents understand the value of personal cyber coverage, only 73% said they are comfortable explaining it to clients and only 68% are comfortable selling the coverage.

“The disconnect between agent/broker and consumer perceptions of personal cyber risk — and the role of insurance in addressing it—is a call to action from insurance professionals,” said Triple-I Chief Insurance Officer Dale Porfilio in the report.

The new report suggests that it will be up to agents and brokers to break new ground and get comfortable confronting consumers about potential risks and available protections.

“Agents need to be prepared to respond to—or, better yet, anticipate—customers’ questions and concerns about exclusions, deductibles, or other policy characteristics that might erode the perceived value of the product,” the report posits. “Agents should be able to explain in detail the breadth of a policy’s coverage, as well as any deductibles or exclusions that might apply.

“In other words, better educated agents can help consumers be more aware of cyber scams and the importance of personal cyber insurance in protecting their assets. This will help them be less likely to become victims and ensure that they’re protected if they do.”

Topics Agencies Cyber

Was this article valuable?

Here are more articles you may enjoy.