Insurance is a business solution to counter cybercrime

Deloitte, a global financial consulting estimated that the cost of cybercrime in Kenya could rise by 30 percent this year.

In 2016, cybercrime cost Kenyan Internet users and businesses about KSh 18 billion according to the  2015 Deloitte Global Threat Index that also ranked the country as the 69th most vulnerable country to experience cyber crimes out of 127 countries globally.

KPMG’s Closing the gap Ensuring your business against evolving cyber threats June 2017 report emphasized that “Businesses need to be aware of the full costs of a cyber-attack in particular those associated with the loss of competitive advantage and customer churn and immediate cost.”

In Kenya cyber threat is evolving daily and companies are realising the potential consequences of a cyber breach.

William Makatiani, Serianu Managing Director disclosed that about 44 percent of financial institutions in Kenya run on a meager cybersecurity budget of less than 1,000 USD annually, whilst about 33 percent of financial institutions in Kenya had no spending on cyber-security.

The Central Bank of Kenya took a proactive step and urged the financial institutions to review their cybersecurity strategy, policy and framework regularly based on each institution’s threat and vulnerability assessment.

Check Point Software Technologies Ltd 2017 global cyber landscape report noted that “2017 has proved to be a lucrative year for cybercrime.

Prominent malware and attack methods continue to evolve, creatively bypassing existing security solutions.”

“ Cyber-attacks are occurring at a higher frequency than previous years. Recent infiltrations have demonstrated the agility, scale, and persistence of an attack that criminals are capable of executing.

All regions have suffered from these large-scale attacks, reinforcing the need for proactive solutions. Massive attack campaigns such as WannaCry, NotPetya and Fireball showcase the nature of today’s threat landscape,” reads part of the report.

The report which collaborates other analysis on this emerging trend notes that most of the prominent attacks use known malware variants that could easily have been blocked had the proper security been implemented before the attack had occurred.

“To stay one step ahead of cybercriminals, organisations should remain attuned to the ever-changing threat landscape.”

It is not gloom,  there are a number of measures companies can take to ensure they minimise the consequences and recover more quickly should a breach occur.

Insurance is part of this solution.

AON Kenya unveiled a cyber-enterprise risk cover that will ensure businesses stay afloat in the event they are breached.

The product covers physical property damage, products liability, business interruption or supply chain disruption from cyber-attacks.

It also includes cyber terrorism coverage; privacy and security liability and event expense coverage; and media liability and technology errors and omissions by endorsement.

According to Aon Chief Executive Officer Sammy Muthui,“Data is an organization’s most valuable asset but it’s also most vulnerable asset. However, as businesses and companies grow, so do their exposure to cyber risk. This simply means that that as the value of a business grows, it raises its profile among hackers.”