Cyber Insurance, what are the real benefits?

21/10/2022 | News

Cyber Insurance, what are the real benefits?

Present in Brazil since 2012, cyber insurance aims to provide additional protection to companies by covering losses resulting from virtual attacks. Companies that are aware and equipped with risk prevention tools are more apt to approve the acquisition of a policy of this nature.

 

The constant advancement of technology and the increasing use and accessibility of the internet have significantly increased the risks of fraud and cybercrime. Despite the numerous programs to protect these attacks, they evolve as simultaneously and rapidly as technology, requiring new and more sophisticated measures. In this way, any company that uses technology to carry out its business and stores sensitive information – personal and corporate data – must be aware of its real security conditions to operate in the digital economy. In this scenario, in addition to the various resources already disseminated and applied - such as antivirus tools, cloud documents and firewalls -, cyber insurance arises for the protection of this valuable asset - data - whose confidentiality determines the degree of customer trust, the credibility of the business, brand reputation, reduction of financial losses.

Cyber risks are linked to all types of criminal attacks carried out in virtual environments and any stored information can become a target. And, although prevention is a recurrent measure, today, given the significant increase in data leakage and virtual attacks by hackers, it has become practically impossible to maintain fully secure systems. E-mails and phishing messages, invasion of social networks, leakage of private information are among the problems in the online environment. The expenses resulting from these attacks may include compensation to data owners, lawsuits and fines, as determined by the General Data Protection Law (LGPD), in force since 2020.

Insurance companies often offer packages of actions to identify vulnerabilities and implement security measures. Once a vulnerability is found in a software, special programs are able to invade and exploit not only the source device of the attack, but others connected to the same network. Protection needs to be seen as a corporate issue and not something restricted to IT areas. It must integrate the corporate culture, raising employee awareness, creating clear safety policies, hiring specialists, adopting adequate technological infrastructure. Among the benefits found in contracting cyber insurance, the following stand out: savings (by avoiding expenses arising from vulnerabilities); image protection (by evidencing the company's concern with stored data); respect and adequacy to the rules of the LGPD.

There is currently a consensus that even if cyber insurance is not able to avoid the impact of a possible digital attack, the context applied and audited by insurance companies so that contracts are carried out - scans and identification of vulnerabilities, analysis of risks on assets, personalized prioritization insights – contributes to the organization, working as a free prior consultation, to establish the degree of maturity that the company has in cybersecurity and define whether or not the client will be accepted by the insurer, which , a priori, confirms the growing interest in price quotations and types of coverage.

According to Checkpoint Research, the average cyberattacks in Q2 2022 reached 46% – 14% above the global average of 32%.
• According to Susep (Superintendence of Private Insurance), in Brazil, the insurance market grew 19.6% in the 1st. half of 2022 (in relation to the 1st half of 2021), moving R$80 billion.
• Worldwide, one in 40 organizations are victims of cyberattacks per week, an increase of 59% compared to 2021.
• According to Cybersecurity Ventures, the world will store 200 zettabytes (two hundred trillion Gb) of data by 2025, half of which will be in the cloud.

 

https://www.negocioseguroaig.com.br/industria/de-olho/seguro-cibernetico/

https://www.revistaapolice.com.br/2022/09/aumento-de-ataques-ciberneticos-e-lgpd-impulsionam-procura-por-seguros/

https://www.cisco.com/c/dam/global/pt_br/solutions/pdfs/report1-distrito.pdf

https://www.bwg.com.br/consultoria-de-seguros-o-que-e/

 

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Talk to our team

+55 11 4178-8811

sphere@sphereit.com.br

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