Britam General Insurance (K) Ltd has unveiled an innovative Cyber Insurance cover which will enable businesses to protect themselves against the increasing trend of cyber-crime.
The product is critical for all types of companies dealing in data, as they are vulnerable to various cyber security risks that can prove deadly to a business.
According to Serianu, a consulting firm, the cost of cybersecurity in Kenya stood at Ksh 30.6 billion (US$295 million) in 2018. It also forecasts that breaches will outpace corporate spend on mitigation measures while threats will also evolve faster than enterprise security as it becomes more increasingly sophisticated and aggressive.
As a result, organisations are now investing more to achieve cybersecurity resilience. According to Serianu’s Africa’s Security Report-Kenya 2018, in 2016, 95% of respondents invested less than Ksh 517,941 ($5,000) on cyber security during the year.
“In 2017, we saw a slight improvement of 7% whereby 88% reported to have spent less than $5,000 on cyber security. In 2018, 26% of respondents spent above $10,000. Further analysis also revealed that majority of organisations which spend $10,000 and above are from the banking and financial sectors. This not surprising since these industries are the most targeted,” the report says.
Britam’s revolutionary product, which is among the first in the Kenyan insurance market, comes hot on the heels of the government’s new tough data protection policy, and a statement from the Central Bank of Kenya Governor Patrick Njoroge that directors of banks other financial services companies would be held responsible for breaches of customer information.
The Cyber Insurance product comes at an opportune time when companies require protection and a safety net in the event of a cyber-attack, it says.
The policy will cover loss or damage to electronic data, reputational costs caused by cyber-attack incidents; protect businesses against data breach or malicious cyber-attacks that affect computer systems; as well as data losses caused by damage, theft, disruption or corruption of electronic data.
Britam cover to cater for property damage
It also provides comprehensive cyber risk cover that includes property damage arising out of a network security breach, business interruption and extra expense coverage arising out of systems failure.
Britam’s venture into the non-traditional cyber insurance sector is in line with the company’s promise to be with its customers every step of the way as well as the corporate strategy whose pillars are innovation, customer experience, partnerships and profitable growth.
During the launch of the product Britam Holdings Plc Group Managing Director, Dr Benson Wairegi said: “Cybercrime will continue to become more advanced not just in the financial sector, but also in many industries across the region.”
“It therefore behooves all corporates to strengthen their core security hygiene, adopt modern platforms and comprehensive identity, security and management solutions to ensure customers details including medical records, credit card information, bank account details and other records are protected at all costs,” he added.
Britam has partnered with Chubb, a global leader in insuring cyber security risks for the last 18 years and is present in 54 countries. Chubb’s policies provide worldwide coverage in response to the ever changing cyber security environment through the delivery of consistent and high-quality services around the world.