Tackling future challenges of the digital era – CertAsig CYBER insurance – by Andreea Tigau, Chief Liability Underwriter
56% of companies are worried about increased cyber-attacks and their impact on business development, according to EY Global Information Security Survey (GISS)
The corporate world has recently become more aware of and responsible towards IT failure. We specifically refer to as cyber risks. The reasons for this increased interest are some significant public and large-scale cyber-attacks as well as the imminent introduction of the General Data Protection Regulation (GDPR), effective 25 January 2018.
Whilst the best IT risk management initiatives can mitigate the chances of cyber-attack or It failures, companies can never be fully protected.
Hello CertAsig! And Hello Insurance! CertAsig has responded to the market’s needs to protect IT systems and electronic data as well as address the necessity to comply with GDPR.
GDPR and consequences of cyber attack
Andreea TIGAU reminds us that companies must comply with GDPR regulations relating to the processing and free circulation of personal data. In May this year when new regulations are implemented, data will be harder to access. This makes cyber-attacks more and more attractive to hackers and companies using computers in their current set-up may more easily become the target of a cyber-attack.
Statistics show that in the United States almost half of private businesses have been cyber-attacked at least once. Not all these attacks are noticed or cause financial loss. Nevertheless, according to reliable source, 60% of SMEs go bankrupt within 6 months of a cyber-attack.
All companies, especially SMEs, may suffer losses as a result of security breaches or cyber-attacks that can, in extreme circumstances, lead to insolvency or bankruptcy. Consequently, one of the benefits of data protection and cyber-risk insurance is to protect both the company and its clients. In this sense, there are two large areas covered by the new product.
What is covered?
CertAsig’s cyber insurance policy offers an international wording used by Hiscox at Lloyd’s. Each and every policy is reinsured by Beazley Syndicate at Lloyd’s with total sums insured of up to 4.000.000 euros per policy. Beazley is globally recognised as an industry leader for this product.
CertAsig’s product is designed to give maximum value added to its clients. The CertAsig policy covers not only the cost of the loss resulting from an event, but also provides the insured with assistance as soon as the cyber event occurs. CertAsig has partnerships with IT companies specialising in emergency IT intervention. The idea is to support our clients during at a stressful time with the benefit of our IT partners’ expertise and experience with cyber incidents.
Our advice to clients is to approach cyber proactively. Cyber does not need to be a complex risk and some simple internal IT measures should suffice. But you can never predict the unknown, this is where our policy comes into play and could also save you a lot of money! IT managers should also sleep better at night…
To learn more about the features of this new insurance product please contact:
Andreea TIGAU – Chief Liability Underwriter.