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New Zealand businesses ‘woefully under-prepared’ for cyber threats


May 27, 2014   by Canadian Underwriter


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The Insurance Council of New Zealand (ICNZ) called on businesses – particularly small and medium-sized enterprises – to be better prepared for escalating cyber threats by reviewing the security of their networks and Internet operations and considering any gaps in insurance cover.

“Cyber-related crimes are believed to have cost New Zealand businesses over $625 million in 2011, and that’s probably a conservative figure because some businesses are reluctant to disclose a cyber-breach of their systems,” Tim Grafton, chief executive of ICNZ, says in a council statement.

“Experts are warning that New Zealand is woefully under-prepared for the increasing threat of cyber-attacks,” Grafton says.

ICNZ pointed to a recent incident involving the Crown Corporation NIWA, the National Institute of Water and Atmospheric Research. “The hacking of NIWA’s supercomputer last week is a stark reminder that New Zealand is not immune to the increasing global threat of cyber-crime,” Grafton says.

Internationally, ICNZ cites high-profile technology breaches involving eBay and retail giant Target that compromised the personal data of millions of shoppers.

Global cyber-attacks increased more than 2,000% in the past four years, with about half originating from the Asia Pacific region and an estimated 75% of organizations in this region experiencing a cyber-attack over the past two years, the statement adds.

Grafton notes that the insurance industry offers cyber risk insurance protection for Internet and network exposures that can cover matters, including liability, intellectual property infringement, malicious code and viruses, business interruption, unauthorized access, theft, website defacement and cyber extortion.

He emphasized the need for businesses to “review their cyber security risks, fully understand the complexities of the very real risks they face and consider appropriate insurance to safeguard their operations and reputation.”


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