Will Brazilian companies demand Cyber Crime Insurance?
WILL BRAZILIAN COMPANIES DEMAND INSURANCE AGAINST CYBER CRIMES?
Yes. The contracting of insurance against cyber crimes is becoming more and more frequent, but pointing out the evolution of technology as a cause of this demand does not mean that such crimes are limited only to IT.
A cyber crime is not just related to the technological environment. It is also associated with the corporate culture, its processes, its data storage, as well as its management policy. It is also generated for reasons that go beyond the performance of hackers. It can be a consequence of errors in the implementation of projects, lack of training, system vulnerabilities or negligence with data protection and accident prevention. The massive use of technologies in different market segments and the increase in remote work exposed companies to new threats such as data leakage, unavailability of critical assets, hijacking information, cryptocurrency mining and credential theft, which generate financial, operational impacts and legal, compromising the future of organizations.
Gartner predicts that by 2021, cybersecurity spending will reach the $ 6 trillion mark, however, a recent IBM study related to the readiness of organizations to combat cyber attacks, revealed the lack of preparation and lack of resources on the part of 77% of respondents. In this context, there is the offer of cyber insurance, a sharing of risks between companies and insurers to minimize the losses resulting from these attacks. The market is not new, but it assumes a potential growth in Brazil, due to the emergence of a culture of data protection and the advent of laws such as the Law of Access to Information (2011), Lei Carolina Dieckmann (2012), Marco Civil da Internet (2014), Bacen Resolution on Cybersecurity (2018) and General Data Protection Law (2018).
The increase in demand for insurance of this nature occurs especially on the part of financial institutions, health care, industries and technology service providers. And although it gains space in the market, it is still little adopted due to the fact that companies do not assess their degree of exposure to risks and the losses they may suffer even if they have a good security policy.
In addition to a complex prevention plan, combating cyber crime requires investments in people, processes and technologies, requirements required by insurance companies to assess the security conditions of companies before hiring. Generally, insurance policies provide coverage for data protection, for companies' civil liability in relation to them and for losses caused by the interruption of activities, when it occurs.
According to data from the Superintendence of Private Insurance - SUSEP, the volume of claims recorded in May this year was almost R $ 10.8 million. In the year, there are R $ 12.269 million, a total reached during social isolation due to the higher incidence of risks. It is important to remember, however, that systems vulnerability is not just related to IT and hiring cyber insurance does not replace the implementation of other security strategies properly aligned with the needs and objectives of organizations.
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