For years now, experts in the cyber security realm have pointed out that incidences of data breaches and hacking attacks have been on the rise.
It is estimated that the number of connected devices will have surpassed the human population, and not only that, but will have 6 times that number as of 2020. This is staggering, and demands that we pay closer attention at present.
Companies have been quick to expand into the large and growing number of digital platforms available to them. However, this also creates new opportunities for all that information to be compromised.
For years now, experts in the cyber security realm have pointed out that incidences of data breaches and hacking attacks have been on the rise. To that end, many companies have moved to respond to this growing threat, but these days it seems that many don’t believe they’ve done enough to adequately protect themselves.
A look at the numbers
For instance, nearly 3 in 5 respondents say that they believe hacking collectives and other criminals are most likely to perpetrate the attacks their companies suffer, up from 53 percent just a year ago, the report said. Further, almost the same number this year believe that their companies don’t provide them with enough resources to make their IT department fully valuable in terms of battling these issues, a number which was likewise up from 53 percent in 2014.
Today, 88 percent of IT professionals say their companies have not done enough to fully safeguard the possibly sensitive data they store, according to a new study from Ernst and Young. Often, these risks aren’t considered, or perhaps are simply misunderstood, by the people making decisions higher up the chain, and it then falls to IT professionals to patch security holes in the hull as it springs leaks, the report said. That can create an environment in which a hacking attack becomes more likely and, potentially, more costly as well.
Hackers are posing a big problem for beleaguered IT departments.
Small businesses are more vulnerable
According to research by Symantec Corporation in 2013, the largest growth area (31 percent) of cyber attack was business, with fewer than 250 employees. This shows that large, brand-name companies are no longer the primary targets of cyber crime. Any small businesses which use email, social media, and participate on online forums are exposed to big liabilities. This is especially true given the fact that small businesses are less likely to have enough budgets for the sophisticated security measures that adequate and proactive cyber protection entails. It is critical to have the appropriate cyber insurance coverage in place.
Challenges
“A lot of brokers find it difficult to line up and compare cyber insurance products,” explained Sun Park, cyber underwriter at APRIL. “Cyber protection selection is tricky business. One needs to take into account a client’s business, industry, size and exposure-all complex variables.”
Park believes that finding a good specialist MGA will save a lot of time in the search for the best cyber coverage tailored to the client’s need.
“APRIL offers coverage for direct loss such as loss of electronic data, business interruption and extra expenses from technology failure,” Park added. “Liability coverage will pay for defense costs arising from claims made against those insured for breaching personal information, non-disclosure agreements, contractual warranties, etc. For example, the cost of creating and issuing a specific press release or establishing a specific website advising customers of the fraudulent communications will be covered under the liability coverage.”
APRIL has been successful at providing tailor-made cyber products for new ventures. A lot of new businesses have a hard time finding general property and liability coverage because of their lack of experience. Finding cyber coverage can be even more challenging for these clients. APRIL has been working closely with brokers and stakeholders to identify and develop effective cyber insurance products and to provide local cyber risk management services backed by the capabilities of a global cyber risk team.
In fact, APRIL also stands out from other insurance companies because the company is innovative, with an internal culture that focuses on keeping up with the latest trends in the insurance market, to ensure that clients are well protected.
“I think this is the reason why we were able to build and offer a very strong cyber product, and how we are able to have a very high renewal retention rate,” commented Park. “Underwriters at APRIL understand that when it comes to cyber risks, no two businesses are the same. We will help you getting the coverage that your client is after without consuming a lot of time and energy.”
Information about APRIL Canada:
APRIL Canada is an independent MGA backed by worldwide expertise in providing innovative insurance solutions for your hard to place insurance risks. True to its values and commitments, APRIL strives to give meaning to the customer relationship. Providing the best solution for an insured is accomplished with team work between the Broker and underwriter. A relationship built on trust enables us to find the right coverage.
APRIL Canada has more than 130 employees, 4 offices Canada Wide, 45,000 Policy Holders and 2,500 Broker Partners. Choosing APRIL means high quality advice and excellent service.
We do not provide ready made products, but made to order solutions. For us, each risk is unique and deserves an in depth understanding.
Anticipating the needs and expectations of Brokers; maintaining an open dialogue; being innovative with products and services: this is the key to customer relationships at APRIL.
Please find out more about APRIL Canada at http://www.april.ca/.
You can contact as on commercial@april.ca, residential@april.ca or 1-855-745-1010.
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