Computer and Internet technologies, which have been actively developing since the beginning of the 21st century, not only accelerated the exchange of information and simplified many technological processes, but also added cybersecurity risks to the piggy bank of companies’ risks.
By 2021, cyber risks entered the top 3 corporate risks, leaving marketing and civil liability risks far behind.
One of the reasons for this growth was their dual nature, because the integrity of information databases of companies and computer systems can be violated not only as a result of deliberate external influence (hacker attacks and malicious software), but also from within (due to errors, omissions and / or illegal actions of personnel, software failures).
The problem of cyber risks has become especially urgent in connection with the coronavirus pandemic, when more than 80% of companies whose activities are in one way or another related to the processing of personal data have switched to a remote mode of operation.
Every day, more than 80 billion illegal operations of various levels of complexity and focus are carried out in cyberspace: from the simplest scanning and ransomware programs to organized hacker attacks.
According to CSIS research, companies lose almost 600 billion US dollars annually as a result of cybercrime, which corresponds to 1% of global GDP.
In 2020, according to the Identity Theft Resource Center, more than 300 million people were affected by publicly reported data breaches. This means that along with financial losses, companies bear the risks of losing their business reputation.
Even with huge investments in cybersecurity, it is impossible to take into account and prevent all threats.
Therefore, companies try to minimize possible losses by insuring information security risks.
Moreover, over the past 5 years, cyber risk insurance has entered the business turnover as one of the main conditions for concluding contracts related to the supply and maintenance of software and the storage and processing of information databases.
The standard cyber risk insurance contract covers the damage and costs of the company associated with the leakage of confidential data, hacking of computer systems, employee errors, which are directly or indirectly caused by the use of computer systems and the Internet.
The choice of additional options for insurance coverage when concluding an insurance contract depends on the goals of the company and the characteristics of its activities.
Director of Pitsas Insurances
Antonis Theofanus
www.pitsasinsurances.com