There is a ‘disconnect’ among corporate board members regarding the perceived value of confidential data and security needed to safeguard such information, according to a recent survey, meaning brokers should step up the education of their commercial clients.
The Ponemon Institute’s 2013 survey, Exposing the Cybersecurity Cracks: A Global Perspective, was based on responses from 4,881 information technology security practitioners in Canada and 14 other countries and reveals that 56 per cent of Canadian respondents said cyber threats “sometimes fall through the cracks” of existing security measures at their firms..
“Insurance brokers would serve their clients well by providing helpful tips to reduce risk and introducing packages that would mitigate damages in the event of an attack,” Maia Espejo, the senior professional liability manager of D&O/E&O for Burns & Wilcox Canada, told Insurance Business. “Cyber Liability insurance provides both third party liability and first party computer security coverage for emerging data security and privacy exposures facing insurers today. As evidenced through the Bell Canada incident, third party liability is an important element to a comprehensive product.”
In early 2014, Bell Canada found themselves on the list of big-name companies who had become ensnared in a hacking incident, announcing that a cyber-attack on a third-party supplier compromised the confidential account information of more than 22,000 of its small business customers.
In the Ponemon Institute survey, when presented with the statement “cybersecurity threats sometimes fall through the cracks of existing security systems,” 56 per cent of Canadian respondents either strongly agreed or agreed.
Worldwide, 69 per cent of respondents either agreed or strongly agreed. (continued.)
#pb#
When asked “what best describes the level of knowledge and concern about cyber security among the board members” of their companies, 19 per cent reported their directors had no knowledge or concern while 29 per cent reported their board members' knowledge as poor.
Nearly one in three said their directors had “some” knowledge or concern, while only 13 per cent described it as “good” and 5 per cent described it as “substantial.”
Protecting a business from online attacks is the new normal for today, says Espejo.
“In the new normal of the online world, companies need to take steps to protect themselves against the financial loss that can result from online attacks,” says Espejo. “The cost of recouping the damages of an attack and the cost of investigation can build and result in significant financial loss for an organization. However, there are important steps organizations can take to reduce the risk of cyber losses.”
In addition to Canada, responses were received from Australia, Brazil, China, France, Germany, Hong Kong, India, Italy, Mexico, the Netherlands, Singapore, Sweden, the United Kingdom and the United States.
Look in the upcoming issue of Insurance Business magazine for Maia Espejo’s tips on how to mitigate cyber liability
