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The Covid-19 pandemic has enabled a large-scale migration to digital.
From small family-owned enterprises that use digital for order processing / payment to larger conglomerates that use digital for seamless WFH, there has been an unprecedented adoption of digital infrastructure across organizations to help in retaining operations and growth.
It has also tweaked the retail customers’ behaviour with preference & adoption of digital payments.
However, the rise of widespread digitisation and internet penetration also brings along the threat of cyber-attacks.
Cyber attaches scaling from large scale to fast-moving, can easily bypass the traditional, security frameworks of even the most secure organisations. And with corporates switching to Work-From-Home environment for employees, there is an increase in the number of cyberattacks on computers, routers and unprotected home networks.
For businesses, this is going to be an ongoing test of resilience, hence banking on a suitable protection is paramount to mitigate the damage which can be caused due to this threat.
The adequate cyber insurance coverage can be the perfect risk mitigating tool.
According to the recent Kaspersky report (a global cyber security solutions provider), the landscape of targeted attacks for BRIC economy is going to see significant rise, especially in sectors like Banking, FI, Education, Energy, IT etc. under these circumstances.
And even as companies are trying to deal with the threats, the type of cyber-attacks is also evolving, creating a more complex and advanced set of threats.
These include:
Cloud vulnerability: Even as an increasing number of businesses adopt cloud computing, data security concerns continue to rise.
Social engineering and phishing attacks: Manipulating and leading unsuspecting victims to perform actions or divulge information without knowledge of the consequences is what this is all about. Baiting, Scareware, Pretexting etc., are some of the more common forms of Social engineering attacks.
Attacks using emerging technology: Machine Learning, AI, and connected devices use a large amount of crowd sourced data and information user information from social media and apps, like satisfaction ratings, brand preferences, spending patterns, browsing histories etc., making them a preferred target for cyber criminals.
Data breaches, malware, and ransomware: A data breach is a security incident in which information is accessed without authorisation.Data breaches can hurt businesses and consumers in a multitude of ways. These can damage lives and reputations and take a long time to repair.
Ransom malware is a type of malware that prevents users from accessing their own system or personal files and demands ransom payment in order to regain access.
A cyber insurance cover is a must especially for corporates as it is designed to help an organization mitigate risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.
Currently, most insurers are offering cyber insurance solution to corporates, more specifically SMEs.
Leveraging technology, insurers have automated underwriting/risk assessment and their product proposition is bundled with claims incident response management. This capability has become a key component in the cyber insurance cover as it provides complete peace of mind in case of a breach.
In a nutshell, the insured can harness the power of automated underwriting and in the event of an incident, the insurer connects them to a full service recovery ecosystem comprising IT Forensic Services, Legal Services, Claims Services as well as reputation management expertise.
With the dynamic nature of cyber-attacks and increasing sophistication, insurers too have widened the scope of cyber insurance covers.
Currently, insurance covers are designed to protect against a number of cyber exposures that can impact businesses including direct costs to the corporates as well as claims/losses from third parties.
Most such products include coverage elements built to take care of privacy protection, retrieval of IT systems/data, business interruption, losses due to phishing or Denial of Services (DOS) attacks, breach of a statutory duty relating to the security or management of information, payment of ransom demands, PR costs to mitigate damage to policy holder’s reputation or personal reputation of senior executives, loss mitigation costs like credit monitoring, identify theft monitoring, call centre support services, reward expenses to secure the conviction of a perpetrator, coverage for computer aided crimes.
While internet has made our life easier, it has also created a world that is riskier than ever before.
With digital taking center-stage for all corporates (small or large), it is critical for organisations to have a Cyber Insurance policy as a shield.