.jpg)
Cybersecurity is still widely underestimated as a risk by many New Zealand businesses, however with cyber threats increasingly coming to the forefront of the insurance landscape, brokers say that now is the time to start educating clients on the importance of a solid cyber policy.
CERT NZ reported a record of over 500 cyber incidents costing almost $3 million in losses in its Quarter One Report 2018, more than half of total losses reported in 2017. Insurers have kept up fairly solidly with the risks associated with cyberattacks, and an increase in policies and specialist underwriters has not gone unnoticed within the market – however, many businesses (and especially SMEs) remain unaware that a single cyberattack could potentially be fatal for the business.
“Cyber risk is a growing global threat that has increased considerably in the last few years, and it is only set to worsen with the increasing movement towards a more digitised world economy, and with companies becoming more reliant on technology to operate their businesses,” said Shanna Parsons, managing director of general insurance at One50 Group.
“Our small country is no longer immune to risk, as this is one area where a cyberattack can originate from anywhere in the world. As insurance brokers, we can inform our clients about potential risks and provide guidance on how to improve network security for mitigation of risk. We can also provide an insurance solution to transfer other risks, so this is an area in which we can really add value to our clients.”
According to Elliott Taylor, director of Dunedin brokerage Navigate Insurance, cyber policies can also be a useful addition for clients with domestic policies, and insurers should be looking at expanding beyond their business-only offerings.
“I would like to see an option to add a ‘cyber insurance’ option for individuals with standard domestic policies,” Taylor explained.
“At the moment you can only buy it for businesses, but I think this would be a great way to up-sell a domestic policy by adding a product that is in tune with modern-day life. Almost everyone has an online presence now which opens people up to cybercrime, so this is potentially an area insurers could look to make more profit from in the domestic space in future.”
