Whilst the introduction of regulatory frameworks surrounding personal data continually heightens the legal and financial repercussions for a company seen to have mishandled it, obtaining sufficient cyber cover is becoming an increasingly higher-stakes game.
In a recent discussion with Reinsurance News, Swiss Re Corporate Solutions’ Head Cyber Technology EMEA APAC LATAM, François Brisson, explained that clarifying and defining minimum IT security posture as a standard will help businesses be more robust and have an easier access to cyber insurance as a result.
“Businesses need clarity to justify investments in IT security, e.g. through a global certification, as we can see in other lines of business such as Marine or Aviation.”
“In nowadays` digital economy, cyber exposure is a key challenge to secure future development and growth – no matter the size of an organisation.”
“As data, access to information and networks are paramount for businesses, IT security is a strategic investment and effort for all business owners.”
Brisson remarked that, after 10 years of large and mega data breaches all over the world, regulation is changing the rules of the game regarding personal data.
“This is a new challenge for the insurance industry as well, as we need to be able to offer relevant protection and capacity.”
He noted that, while the insurance industry adapts continuously to those new exposures, the systemic aspect of cyber requires significant investments from businesses into IT security, process and talent, to deal with this growing exposure to risk.
In line with this thinking, Swiss Re Corporate Solutions recently launched CyberSolution 360°, a product aimed at improving the cyber security posture of SMEs with a multi-pronged approach that includes education and ongoing support.
The product covers cyber incident management including costs such as data recovery fees, legal advice fees or administrative penalties; first party losses including the loss of income; as well as third party claims, such as damages under an SME`s privacy liability.
“Resilience against cyber risks is a major and critical topic for all kinds of companies. SMEs are challenged because they are not subject to specific measures or financial support from the authorities in the face of digital risks,” said Brisson.
“Their development and sustainability depend on their ability to innovate, find new markets and develop internationally. In this context, digital tools and new technologies are essential to succeed, so they need to secure these tools.”