Global insurer and reinsurer, XL Catlin, has launched its Cyber and Data Protection Insurance policy in the Asia-Pacific, as companies across the region find themselves increasingly vulnerable to more sophisticated cyber threats.
The new policy is designed to protect businesses across the Asia-Pacific from business interruption as a result of a network compromise and a data breach, including any extortion demands, first party incident response costs, forensic investigations, and also public relations support, explains XL Catlin.
Timothy Powell, Regional Manager, International Financial Lines, XL Catlin’s Insurance operations in the Asia-Pacific, commented; “Combining the global resources of our underwriting and claims teams with the expertise of our breach response providers, our Cyber and Data Protection insurance policy offers companies the broad cyber coverage they need under one easy-to-understand policy.”
Cyber risk has fast become one of the world’s rapidly emerging risks with the potential to drive huge, and far-reaching economic losses, and businesses across the Asia-Pacific have been cited in the past as a ill-equipped and ill-prepared to manage their cyber exposure.
“We know there is a real need for this policy across Asia Pacific because as technology and digital connectivity evolve, companies are finding themselves exposed to new and more sophisticated cyber attacks. A report by Juniper Research reinforces this – it is estimated that the cost of data breaches will reach US$2.1 trillion globally by 2019, almost four times the estimated cost of breaches in 2015.
“No company is fully secure, no matter how superior its cyber defence mechanisms are. They must proactively embed cyber risk management in their strategies and operations to combat the unrelenting threat of cyber attacks,” continued Powell.
The re/insurer also explains that the policy protects against third-party liability costs that organisations face as a result of a data breach, which includes the regulatory investigation, or contractual liability associated with the Payment Card Industry Data Security Standard.
The new policy also covers areas such as copyright infringement, trademark infringement, invasion of privacy and false advertising, in both offline and online content as well as social media, according to XL Catlin.
XL Catlin’s Country Manager for Singapore, Insurance, David Guest, said; “The rapidly changing legal environment in Asia Pacific in respect of cyber security is driving the need for organizations to look at their exposures to cyber-crimes and data compromises – which is increasing. Many countries across Asia, including China, Japan, Malaysia, South Korea and Taiwan have recently stepped up their approach, by introducing new laws or implementing more exacting standards for data and network protection.”
Robin Johnson, Country Manager for Australia, Insurance, XL Catlin, added; “Australia has just passed a new law in February this year requiring the mandatory notification of a data breach, and companies need to comply with this new Act within 12 months. While Singapore and Hong Kong have mature cyber and data protection regulatory frameworks in place, these two countries are also considering similar provisions in the near future.
“With increasingly stringent regulations as well as the financial and reputational fall-out of a cyber incident, companies need to have a robust risk management strategy and the right insurance solution to protect themselves against cyber risks.”
