CYBER INSURANCE – INSURANCE THAT CAN PROTECT YOUR ORGANISATION AGAINST A CATASTROPHE
Israel is a hotbed for cyberattacks. Cyber criminals and terrorists are usually motivated by economic gain, but some also have ideological or geopolitical agendas.
According to a recent IBM Cyber Security report, 23% of worldwide cyberattacks in 2020 were carried out against financial and insurance institutions and a further 17.7% against major commercial and industrial companies. 36% of all cyberattacks in 2020 involved cyber extortion including data theft.
The threats that organizations face in the event of a cyberattack not only involve direct financial losses due to cyber extortion by cyber criminals, but also the publication of confidential data, a situation that can create an existential risk to the organization and its share value.
There is a widespread misperception that hackers don’t bother to target small and medium sized organizations such as Start-ups and only go for big companies. However, the very fact that many small and medium sized businesses invest only minimal resources in data security, puts them at a much higher risk of a cyberattack.
What Protection Does Cyber Insurance Provide?
In general terms, cyber insurance not only provides essential protection to the financial assets of the business itself but also protects against third party losses, including to clients of the company. Cyber insurance policies also provides crisis management services: In the event of a cyberattack, the insurance company provides immediate response by a team of technology experts with the knowledge and tools to deal with it in the most optimal manner and minimize the financial impact on your business and your reputation.
The Huge Risks Involved In Being Held Liable For Third Party Losses Due To A Cyberattack
The most significant exposure that companies face is being held liable for party losses due to a cyberattack. The malicious distribution of confidential third party data by cyber criminals can put the company at risk of having to deal with a high number of third party claims and huge amounts of compensation.
In a nutshell, cyber insurance is no longer a luxury product. Due to the growth in the scope of global cyberattacks over the last few years and increasing sophisticated tactics by cyber criminals with a range of financial, political and ideological motivations, cyber insurance is a basic and essential insurance cover for every small, medium or large business.
Accord Insurance Group is one of the five largest insurance agencies in Israel and specializes in special risks insurance including cyber and D&O insurance.
If you wish to consult on any matter please direct any inquiries to:
Yael Ramati, VP, head of commercial underwriting and reinsurance at Accord Insurance Agency. 050-2162212 email yael@accord-ins.com
