Story image

New Zealand businesses still sluggish in cyber insurance takeup

23 May 2017

With the massive WannaCry ransomware attack still echoing in New Zealand organisations' minds, protecting against potential damage comes top of mind, which leaves ripe opportunities for cyber insurance.

There is potential for the country's cyber insurance market to reach $500 million in premiums, according to Delta Insurance director Ian Pollard. Especially when only 5% have taken out insurance.

Report suggest that cybercrime costs New Zealand around $250-500 million, and Symantec says New Zealand has the second-highest number of ransomware attacks in the southern hemisphere. All of this amounts to a growing need for public-private partnerships.

He predicts that the number of cyber insurers in New Zealand grow from eight to 16 in the next two years, with next year being prime for growth.

“The global cyber insurance market will increase tenfold within the next eight years from $US3.5 billion to potentially $US25 billion by 2025. The cost of cybercrime will also grow from $US3 trillion in 2015 to $US6 trillion in 2021," he explains.

Delta Insurance is an underwriter for cyber technology, environmental and UAV insurance cover - and more than half of its cyber insurance claims have been related to ransomware.

“Public-private sector partnership is essential to improving New Zealand’s cyber security architecture. Ransomware attacks have made up 40 percent of our insured cyber claims over the last 12 months," Pollard comments.

He cites the government's new Computer Emergency Response Team (CERT) as a public initiative to monitor, track and advise both individuals and governments on cyber incidents.

“Sophisticated cyber insurers are conscientious around understanding accumulations for various cyber disaster scenarios and there are some potential risk scenarios that could have very severe and wide-ranging consequences," Pollard says.

He says examples include cyberterrorism and the WannaCry event. Not only that, cloud provider outages, global malware and other ransomware.

"Ransomware attacks aren’t going away. New Zealand has had hundreds of ransomware attacks this year and we expect more. Any of these events could be truly global in nature and are perhaps the more concerning incidents being silent cyber scenarios exposing non-cyber insurance products to potential cyber-related losses," he says.

“We’re passionate about cyber risk management and helping clients, especially small to medium business enterprises, and insurance brokers to understand the risks associated with cyber threats,” he concludes.

Interview: Culture and cloud - the battle for cybersecurity
ESET CTO Juraj Malcho talks about the importance of culture in a cybersecurity strategy and the challenges and benefits of a world in the cloud.
Enterprise cloud deployments being exploited by cybercriminals
A new report has revealed a concerning number of enterprises still believe security is the responsibility of the cloud service provider.
Ping Identity Platform updated with new CX and IT automation
The new versions improve the user and administrative experience, while also aiming to meet enterprise needs to operate quickly and purposefully.
Venafi and nCipher Security partner on machine identity protection
Cryptographic keys serve as machine identities and are the foundation of enterprise information technology systems.
Machine learning is a tool and the bad guys are using it
KPMG NZ’s CIO and ESET’s CTO spoke at a recent cybersecurity conference about how machine learning and data analytics are not to be feared, but used.
Seagate: Data trends, opportunities, and challenges at the edge
The development of edge technology and the rise of big data have brought many opportunities for data infrastructure companies to the fore.
Popular Android apps track users and violate Google's policies
Google has reportedly taken action against some of the violators.
How blockchain could help stop video piracy in its tracks
An Australian video tech firm has successfully tested a blockchain trial that could end up being a welcome relief for video creators and the fight against video piracy.