In a bid to enable businesses to protect themselves against the increasing trend of complex and aggressive cyber-attacks, a Kenyan insurance company has introduced a Cyber Insurance cover. The innovate product is among the first in the country.
Launched by Britam General Insurance Ltd, the product 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,” it said in a press release.
The insurance policy covers loss or damage to electronic data and reputational costs caused by cyber-attack incidents. Also, it will protect businesses against a data breach or malicious cyber-attacks that affect computer systems as well as losses caused by damage, theft, disruption or corruption of electronic data.
The Cyber Insurance product is targeted at all types of companies dealing in data, as they are vulnerable to various cybersecurity risks that can prove disastrous to a business. “Cybercrime will continue to become more advanced not just in the financial sector, but also in many industries across the region,” Group Managing Director, Britam Holdings Plc., Dr. Benson Wairegi said.
Moreover, the policy 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 entry into the non-traditional cyber insurance sector comes at a time when companies require protection in the event of a cyber-attack. This is because cybercrimes are becoming increasingly rampant with cybercriminals using more advanced and scalable tools to breach user privacy. Two billion data records were compromised in 2017 and more than 4.5 billion records were breached in the first half of 2018 alone. By 2021, global cybercrime damages are estimated to cost $6 trillion per year.
Considering this, Wairegi added that it “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.”
The product launch also follows the government’s new tough data protection policy and a recent statement from the Governor of the Central Bank of Kenya, who said that directors of banks other financial services companies would be held responsible for breaches of customer information.
To effectively deliver the new service, Britam has partnered with Chubb, a global leader in underwriting cybersecurity risks with over 18 years of experience and presence in 54 countries. Chubb’s policies provide worldwide coverage in response to the ever-changing cybersecurity environment around the world.