Bye Bye Hackers! Cyber Insurance is Here!!!

Bye Bye Hackers! Cyber Insurance is Here!!!

Authored by Ameex Technologies on 21 Jan 2021

Today’s disruptive digital insurance world is experiencing frequent assaults from cybercrimes and cyberattacks. Such cyberattacks can potentially harm or destroy entire enterprise data or network operations. They have resulted in the slapping of major legal fees, fines and to say the least, reputation setbacks for numerous enterprises. More augmented are such ruthless cybercrimes and data breaches against Insurers which have implemented basic minimal cybersecurity solutions.  Over the last few years, they have not spared even cybersecurity leaders at the other extreme.

As a much-needed intelligent safety measure, cyber insurance protects businesses against distributed denial-of-service (DDoS) attacks, malware, ransomware, or other types of cybercrimes. Over the past decade, the evolving digitization in the global insurance space has seen technologically advanced digital insurance implementations. Peeking it all has been the recent revolutions in terms of cyber insurance products and solutions. Cyber insurance products and solutions can also be custom programmed for specific business risks. They can be exclusively designed to help businesses successfully defend their business networks and systems against all types of cybercrimes and hackers.

Cyber risks/Cyber attacks in today’s digital insurance world

Insurers in the digital world are amazed and at the same time alarmed at the world over to a wide array of cyber risks. Starting from cyber data thefts, ransomware, phishing attacks to frighteningly huge business espionages, cyber risks have become a major pain in the neck for most enterprises.

How often would you have heard anecdotes of innocents clicking on links in random email messages to claim cash rewards; or claiming the recipient to have won money and asking for their account numbers, responding to which the recipient is fully exposed to ransomware attacks on their bank accounts. Such ransomware menaces have perpetuated to exponential levels over the past decade.

Further, cyber risks such as phishing have not spared even larger corporations. Recently there have been reports of phishing attacks on the entire end-to-end IT system and network of huge enterprises. There have been anecdotes of failures and disruptions in their entire IT system operations. Incidents of spyware emails being circulated for crucial information and data theft are aplenty on an everyday basis. Such incidents in massive scales have eventually resulted in leadership stakeholders being threatened for a huge ransom in return for restoring their safeguarded information.

There are otherwise miscellaneous cyber risks as well faced by enterprises in terms of accidental/unintentional cyber data breaches or weak system reliability resulting in IT operations risks.

Need for a cybersecurity mitigation framework

The possibility of any or all of the cyber risks discussed may be always lurking around the corner for enterprises at any time. Over the past few years, statistical reports the world over are indicating more and more of smaller insurance enterprise networks being attacked by cyber criminals. Every insurer is now clearly able to visualize that without proper cybersecurity framework in place, their system could be the next in line as favourites for cyber criminals to attack. Hence, the necessity for putting in place a robust cybersecurity mitigation framework for every insurance enterprise, however its size may be, has become critically crucial like never before.  Ameex experts have chalked out an end-to-end cybersecurity framework to address and safeguard every single aspect of insurance IT systems.

Ameex take on a strong cyber risk and insurance framework

In order to effectively manage cyber risks and threats, Insurance companies must employ certain key security technology aspects. These include:

  • Robust cybersecurity platform implementation
  • Deploy secured devices in every aspect of potential cybercrimes and threats
  • Technologically skilled manpower in terms of cybersecurity know-how
  • Augmented policy in cyber insurance

Ameex recommendation on cyber risk management framework in detail

1. Put in place a technologically advanced Cybersecurity framework:

  • Such a framework holds the capacity to stop upfront, Cyber risks and threats
  • It provides an agile platform that allows Enterprises to proactively respond to high-tech malware, and cyber-attacks by hackers

2. Put in place a technologically skilled manpower in terms of Cybersecurity

  • Obtain precious perceptions about implementing a reinforced Cybersecurity policy
  • Deploy manpower who are experts in Incident management and supportive technologies

3. Equip manpower with devices that are marks of greater security features
4. Gain heightened Cyber insurance

  • Advanced Cyber insurance policies are capable of defending your Enterprise from interlude and damage

Do enterprises really need cyber insurance?

It is like asking, “Do I have to use computers for my enterprise operations?”. As much as global enterprise operations are getting more and more internet based, every aspect of their business including data storages, data warehouse technology implementations, digital operations etc. are being undertaken on cloud or other internet based platforms. Hence, it is but by default that every enterprise would require cyber insurance just as they require insurance for their physical assets, protection and insurance against natural calamities, or business-related insurance.

Considering hypothetically that an unexpected occurrence of cyber breach in a company’s data asset(s) or a network hack has been reported, despite having in place a cyber security posture; the scenario most often proves extremely costly for any enterprise as most of business operations occur on the Internet. It is most likely the company may not possess adequate infrastructure or technically skilled manpower to tackle them or recuperate losses incurred. To ensure such shortcomings do not cripple the business, today’s enterprises must establish cyber insurance as an integral part of their ecosystem.

What is the coverage?

Cyber insurance products and plans cover a wide range of cybercrime losses and risks that are likely to arise out of unprecedented cyber-attacks. There are cyber insurance plans that cover your physical hardware assets, and network assets. On the other hand, there are insurance plans that cover losses in terms of revenue loss due to data and information related cybercrimes.

Is cyber insurance an alternative for cybersecurity technology?

Cyber insurance, not an alternative but mandated plug-in for cybersecurity technology implementation!!!

Cyber insurance is a means to alleviate the possible losses that an enterprise may incur due to cybercrimes and cyber-attacks. However, cyber insurance in today’s digital world have become an integral part of cyber security technology implementations by enterprises and as a part of their risk management initiatives.

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