Saga has reacted to customer concerns about cyber threats by releasing a personal policy, but the add-on policy lacks transparency and a preventative element.
Saga has recently launched its first individual cyber policy, called personal cybercrime cover, which is included within its home insurance product.
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What does Saga cyber cover actually deliver?
The policy covers individuals against cyber attacks, fraud, and scams, and is part of its legal expenses add-on. It claims to have launched a ‘brand-new’ proposition to the market, being the first insurer to offer a personal cybercrime product as part of its legal expenses add-on.
What is impressive about Saga’s policy is that it claims it was launched in response to customer concerns. Its in-house research found that 72% of its customers over 50 (a strong demographic for Saga) feel at risk of being a victim of cyber crime or online fraud.
The policy provides expert advice in the event of a cyber attack, as well as financial reimbursement. While responding directly to address a customer concern is commendable, Saga could take this one step further. They need to help customers avoid falling victim to an attack in the first place.
Transparency
Another issue is how transparent the policy is, as it is somewhat hidden within legal expenses. Transparency is essential for any new product, but especially a complicated policy aimed at an audience unfamiliar with the topic.
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By GlobalDataCustomers will need to be reassured that they will not only receive financial reimbursement. On the other hand, that is insufficient. Customers need to know they will not be affected in any other way, such as incurring a damaged credit rating.
Cyber attacks are becoming increasingly prominent in the news – even in the last few days Facebook has announced a security breach – so it is good timing for Saga to launch such a product. However, it could go further.
Saga could also look to develop a product which tracks when a customer’s data has been compromised and responds automatically. This provides a seamless offering as well as peace of mind. Smart contracts are already being seen in travel insurance when delayed flights trigger payments.
Overall, this is a small start to what will evolve over the next few years.
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