Specialist insurtech Edmund has launched a customer-focused cyber insurance product, underwritten by Munich Re Syndicate at Lloyd's, to enable SMEs to quickly and efficiently address increasing cyber-security concerns, such as ransomware, malware, and social engineering fraud.
Edmund, Australia’s first truly dedicated digital cyber insurance provider, boasts of an online platform that “enables businesses, such as SMEs, to buy comprehensive cyber insurance protection through an easy, customer-driven process that takes less than 10 minutes,” Edmund founder Richard Smith said.
“Edmund is an insurtech which is filling a very real need – the capability for Australian SMEs to quickly and efficiently buy a very comprehensive cyber insurance policy,” said Joel Pridmore, head of financial lines and business development Asia, at Munich Re Syndicate at Lloyd's. “Edmund has made cyber insurance fast, easy, and simple. But Edmund’s innovation extends beyond that to incorporate cutting edge insurance protection, such as Social Engineering Fraud cover, for new and real threats that local businesses are facing in 2018.”
Smith said the Australian Cyber Security Centre’s 2017 Threat Report revealed a 15% rise in reported cyber security incidents in 2016-17 to 47,000 from the previous year, and warned that 60% of all targeted attacks this year will be against SMEs.
“Australian SMEs recognise this risk to their business, but have found insurance solutions difficult to find, understand, and buy,” Smith said. “We continue to see growth in threats such as ransomware and malware attacks in Australia and there are a number of security measures businesses should have in place to protect themselves. Cyber insurance provides complementary protection – for example in the event of a ransomware attack – businesses can be covered for the costs to recover from the ransomware event, loss of profit, and litigation associated with the loss of personal or commercial information.”
Smith also cautioned against an “unprecedented” volume of social engineering attacks, or business email compromise, “which are causing a real strain on SME cashflows.”
According to the Australian Cybercrime Online Reporting Network (ACORN), over 2016 to 2017, social engineering attacks rose by 230% from the previous year.
"These attacks occur when criminals pretend to be customers, suppliers, or senior individuals within businesses and trick staff into paying/transferring large sums of money into the attackers’ bank accounts,” Smith said. “The issue with these attacks is that most SMEs are not insured for this and recovery of the stolen funds from the banks is largely not viable.”
Edmund has teamed up with KPMG to provide the critical emergency response capability that Australian SMEs need to recover quickly from a cyber threat or breach.
