Consumers See the Risk, but Not the Value of Coverage Says Triple-I HBS Study
While three-quarters of consumers have had their personal information lost or stolen in some form of cybercrime in the United States, more than half of insurance agents say their customers still don’t see the value of personal cyber insurance. Yet even as threats grow, many homeowners remain unsure about personal cyber insurance. A March 2025 report, Addressing the Personal Cyber Protection Gap by the Insurance Information Institute (Triple-I) and HSB, highlights both the challenges and opportunities for agents.
The following are six takeaways for agents from the report.
1. Consumers Recognize the Threat—But Don’t Know the Solution
Cyber risk is everywhere—in the news, in conversations, and now amplified by “deepfake” technology and generative AI. As outlined in the following statistics, it has also touched most households:
- 28% of consumers had a social media account hacked.
- 23% experienced a data breach.
- 14% faced an online attack.
“As digital lifestyles evolve and become more interconnected, so do the risks,” said James Hajjar, chief product and risk officer for HSB, part of Munich Re. “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.”
Still, 56% of agents reported their customers don’t understand or agree with the value of personal cyber insurance.
Agent Action: When broaching the topic of cyber insurance, an agent may want to consider employing real statistics in client conversations to make cyber risk tangible, showing how common these attacks are and framing cyber coverage as a natural safeguard.
2. Deepfakes, AI, and Connected Homes Are Changing the Risk
The rise of deepfakes, generative AI, and smart-home devices such as doorbells, thermostats, and security cameras has created new vulnerabilities. Malware can exploit these systems, exposing homeowners to extortion or loss of control over personal data.
Historically, personal cyber was viewed mainly as identity theft, with banks and credit card issuers making fraud victims whole. But today’s risks reach far beyond that.
Agent Action: Cybercrimes have evolved into highly sophisticated schemes. It might be worthwhile for an agent to highlight how today’s risks extend beyond stolen credit cards, especially for households with smart devices—position cyber insurance as protection for the “connected home.” For threats to an agency’s older or elderly insureds from new and emerging frauds perpetrated through deepfakes and AI, see Agency Checklists September 25, 2025, article entitled, “FBI Alert Sounds Alarm on Costly Elder Fraud Scams.”
3. Agents Believe in the Coverage—but Confidence Varies
“This is a challenge of the unseen threats – insurance agents see the storm, but homeowners can’t envision the damage until it’s too late,” said Sean Kevelighan, CEO, Triple-I. For example:
- 84% of agents believe in the value of personal cyber insurance.
- But only 73% are comfortable explaining it, and just 68% are confident selling it.
- 43% say their customers understand its value, while another 33% are “not sure.”
“Consumer education, agent training and a compelling, data-driven approach to selling personal cyber insurance will be essential to driving customer adoption of the product.”
Agent Action: Agents may want to think about increasing or emphasizing the importance of education and training in their agency on better explaining the benefits of personal cyber insurance coverage as well as the ins and outs of selling it.
4. Highlight What Customers Worry About Most
Agents report that clients are most concerned about:
- Identity theft/fraud
- Online scams
- Malware attacks
- Extortion
- Online harassment
Agent Action: Lead with these concerns in sales conversations—start by asking clients which of these risks worry them most, then connect that concern directly to coverage.
5. Address the Pricing Question Directly
- 71% of agents say price and breadth of coverage drive client decisions.
- Over half believe clients would pay up to $100 annually for coverage.
- 77% of agents presented the product at least once last month—but adoption remains limited.
Agent Action: Frame the cost of personal cyber as less than most families spend on streaming services or the wireless internet they use at home—helping clients see it as an affordable price-value option may help more insureds add this coverage.
6. Educate and Position Yourself as the Solution
“The disconnect between the alarming rate of cybercrimes and the low adoption rate of personal cyber insurance is striking. This is a clear gap and an opportunity to help build awareness,” said Hajjar.
Dale Porfilio, FCAS, MAAA, chief insurance officer, Triple-I, added that this gap “is a call to action from insurance professionals to provide greater understanding of the perils to consumers to drive product acceptance.”
Agent Action: Agents may want to consider positioning themselves as a trusted “cyber-home’ advisor by offering educational materials—such as FAQs, client webinars, or one-page handouts—on personal cyber coverage.
It is apparent that while the cyber insurance marketplace continues to grow, personal cyber coverage remains an underutilized tool to help your insureds. With threats expanding from identity theft to AI-driven fraud and connected-home vulnerabilities, agents who educate and simplify the coverage conversation are positioning themselves well to close the gap.
For those individuals interested in reading the Triple I – HBS Report, it can be accessed here: Addressing the Personal Cyber Protection Gap
