Some industries, such as online retail or banking, handle large amounts of sensitive and possibly lucrative data. By the very fact that the services they offer are to a wide extent are virtual, the exposure is rather obvious. With others, like manufacturers, telecommunications and healthcare, it is their obvious dependency on IT which makes them an attractive target for attacks in the cyber sphere. And indeed, participants of industries where neither apparently applies are sometimes lead to believe that this topic is of subordinate relevance or relevant to others.
Unfortunately, this is far from true, as an even quick analysis and recent events show. It is a misperception that a company has to have a widely known brand, a particular product or media coverage to become a target. Falling prey to one of the ominous phishing mails or an inconsiderate click of an employee on a seemingly harmless attachment are equally relevant for each and every company. Recent events and our claims experience show us that both large and small businesses are targeted by cyber criminals.
The top three cyber strategies of businesses
In our daily discussions with clients we encounter broadly three classes of responses:
This simplified classification is of course exemplary and in reality more like a continuum. It can also be observed that when the conversation is brought to Cyber and insurance it is either the complexity of what is covered under which line of insurance (property, cyber, professional indemnity, D&O and crime being the ones which could immediately be triggered, depending on the loss scenario) which may be challenging. A certain saturation given the ever increasing media alerts and the fear this could only be the insurance industry seeking the next product it can sell are other reservations.
The risk, of course, is real and can be effectively managed by a combination of prevention and mitigation, where insurance falls under the latter.
Ante Banovac shares his thoughts about future risks facing the insurance industry and the state of the insurance market in Serbia, Slovenia and Croatia
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Group Practice Leader Financial Lines
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