Close cyber security loopholes says insurer

 

Cybercrime is projected to cost the world $9.5 trillion USD in 2024. Global cybercrime damage costs further are expected to grow by 15% per year over the next two years, reaching $10.5 trillion USD annually by 2025 (Forbes).

In Jamaica, the problem is also a challenge. The Bank of Jamaica reported that local banks detected about $715 million in fraud losses in 2021, $800 million in 2020, $1.3 billion in 2019, and $1.2 billion in 2018.

In general, emerging threats are increasing. William Craig, CEO of BCMG Insurance Brokers Limited asserts that use of improved monitoring programmes backed by comprehensive insurance model will effectively reduce losses being experienced both at the individual and company level

Craig outlines, “Cyber Risk is no longer a luxury, but a critical consideration. Companies rely on databases to serve and protect customers, make business decisions and manage their workforce.”

Cybercrime, globally, has increased as most of their records, especially in accounting, and record keeping, and communications are archived in digital format. Valuable business assets are now accessible by anyone in the world from anywhere.

Bernard Marr, writing for Forbes Magazine indicated in October 2014 that by the end of the coming year, the cost of cyber-attacks on the global economy is predicted to top USD $10.5 trillion.

He notes, “ artificial intelligence (AI) will have a transformative impact on both attack and defense.” Marr said that a shortage of professionals with the skills needed to protect organizations from cyber-attacks continues to be a challenge.

Firms should expect, he says, to continue to see more sophisticated and smart AI-powered attacks ranging from “deepfake social engineering attempts to automated malware that intelligently adapts in order to evade detection.”

Internationally, organizations continue to fall prey to ransomware attacks as well as data breaches. Monitoring coupled with cyber insurance protects against – the loss, theft or destruction of a company’s digital assets. Alongside this is the need for comprehensive insurance coverage.

Coverage should include :Cyber incident response costs (including IT forensics, legal breach notification and crisis communications)
Cybercrime (including social engineering, and theft of personal funds)
Cyber extortion
System damage
System business interruption
Cyber and privacy liability
Reputational harm
Management liability (arising from a cyber-attack)
Media liability
Optional extras



Cyber insurance, also called cyber liability insurance or cybersecurity insurance, covers financial losses that companies have as a result of ransomware attacks, data breaches and other cyber incidents.

Security breaches are growing and costing more. IBM’s Cost of a Data Breach report notes that 83% of organizations in the US have had more than one data breach, and the average breach costs USD 4.35 million.

Cyber insurance lessens the financial impact and is an important part of risk management for businesses today. “Comprehensive insurance aims to ease the burden on companies but first assertive company level action needs to be taken says Craig.



ABOUT BCMG BROKERS



BCMG Insurance Brokers provides clients with a full spectrum of insurance products, solutions, and services to tackle the changing paradigms of the insurance landscape. Formerly Billy Craig (1963) and MGI (1986), BCMG is today one of Jamaica’s leading insurance brokers, now authorized by the Financial Services Commission. BCMG is equipped to revolutionize the insurance industry, enhancing competitiveness and protecting clients.