Growing need for a cyber insurance “backstop”

“The cyber market is growing,” Mahan Azimi, a research analyst and policy developer at the Canadian Insurance Agency, said in a telephone interview from his office north of Toronto. In fact, Alberta, British Columbia, and Ontario are the “fastest growing” sectors in the insurance industry. It’s a “small but fast-growing business area,” he said.

seismic shift

When the pandemic first hit in 2020, many suddenly shifted to working from home and found that “digital processes have moved online.” Along with that, “incidents of cybercrime such as ransomware have increased significantly.”

Even now, with the pandemic seemingly behind us, “cybercriminals are targeting businesses more and more aggressively,” the need for cyber insurance remains critical.

“Cyber ​​insurance is a good backstop in terms of cyber losses,” he said. As employees are “awakening to the risks of remote work,” they are “increasing awareness” of the problem.

In fact, on that day, the agency released a new “Cyber ​​Savvy Report Card.”

In the gist:

• Seventy-two percent (72%) of respondents said that their employer’s You have reported at least one activity that may compromise security or data. or text (5%), use the same password to access multiple of her websites for work (27%), and use her public Wi-Fi while using her work computer. use (23%).
  
• Thirty percent (30%) of employees surveyed believe cybercriminals won’t target them at work, and 28% of respondents said their employer is responsible for protecting their workplace from cyberthreats. said.
  
• Only 34% of respondents reported that their employers provide mandatory cybersecurity awareness training.

According to the agency’s press release, the survey was conducted among 1,525 Canadians working for small businesses (defined as businesses with fewer than 500 employees) and their employers.

But cyber insurance should be seen as a “complement” to a company’s cybersecurity policy, Azimi warns, and is “not the whole” of that policy.

By taking strong steps to “improve their attitude” regarding precautions to protect their businesses online, these businesses could “qualify for broader coverage” of insurance.

He points to a 2021 cybersecurity study by CIRA (Canadian Internet Registration Authority) and found that regarding cyber insurance:

• “Fifty-nine percent (59%) of organizations have cybersecurity insurance as part of their business insurance, and 29% have cybersecurity-specific insurance.”
  
• “Most organizations covering cybersecurity say providers have either increased premiums or required new forms of proof that corporate cybersecurity measures are in place.”
  
• More generally, between the summer of 2020 and the summer of 2021, “nearly one-fifth of organizations suffered a ransomware attack. They say they paid the ransom they demanded, and 59% report their data was stolen.”

When trying to find the right insurance for your business, Azimi asked leaders to ask the following questions: There is no one size fits all. ”

policy

There is cyber insurance that “covers a wide range of events,” for example, legal costs from ransomware attacks, civil damages that can result from hacks, and even “advanced coverage,” which includes forensic investigations. Or any public relations help needed. If you are a victim of a cyberattack and need advice, you may also be able to call her 24 hours a day for her policy on cyberattacks.

“It gives me peace of mind that I have someone to call,” Azimi said. “A good policy is one that addresses the needs of the business…we encourage organizations to speak with their insurance representatives.”

Cooperation

The agency works with the federal government on cyber education. We want Canada to be cyber safe,” he said.

He cited the Canadian Cyber ​​Security Center in Ottawa as an excellent “business resource.”Center at 1-833-CYBER-88 (1-833-292-3788) or [email protected]

“If you have questions, businesses can call,” he said.