Delta Insurance Press Release: Here’s how to protect yourself from one of the greatest threats of 2018.
Cyberattacks are one of the most dangerous threats facing New Zealand businesses.
They are also – along with nuclear weapons and radical terrorism – considered one of the most dangerous global threats, according to US intelligence heads.
Today, Delta Insurance has released research in their new white paper revealing the extent of the risks, and showing how businesses can protect themselves.
It has also released an updated Cyber Insurance product, which offers cover including of Cloud and network failure, extortion costs and hacker theft, loss adjuster, emergency and mitigation costs network improvement (betterment) PCI costs and investigation liability costs.
New Zealand, despite its geographical isolation, is one of the most vulnerable countries. New Zealand has expanded its cyber resilience capabilities and strategies to deal with attacks. However, it remains one of the “Cyber Five” – alongside South Korea, Australia, Japan and Singapore who appear to be more vulnerable to attacks than any other Asian economy.
New Zealand sits 19th in the Global Cybersecurity Index, which measures a country’s commitment to cybersecurity, compared to Australia in 7th place.
Yet New Zealand businesses remain underprepared. The number of Australian and New Zealand small businesses who have faced a cyberattack are virtually identical (19% in Australia and 18% in NZ), but only 6% of New Zealand SMEs hold cyber insurance, compared with 14% of Australian SMEs.
Ian Pollard, co-founder of Delta, said the research revealed deep vulnerabilities in New Zealand business. “Delta continues to offer the most comprehensive insurance solutions available for cyber. A cyber risk can arise despite a business’s best efforts to avoid it, and it is vital to mitigate those risks. We have designed our offering to ensure it can suit businesses facing different situations.” Ian said.
“Getting cover in place alongside our enhanced pre and post loss risk management solutions ensures businesses can stay ahead of the threats, while also embracing change.”
Beyond the risks faced by businesses, New Zealand’s legislation is falling behind international standards. In New Zealand, unlike other jurisdictions, there is no compulsory data breach notification law.
There is also significant under-reporting of cyberattacks in New Zealand and internationally. This is due to fears of negative publicity, legal repercussions and the cost of notifications. Further, there is a perception the cyberattack victim is punished through publicity, rather than the perpetrator.
In this environment, businesses are recognising the need to invest in mitigating risk. Some forecasts predict the cyber insurance market will grow from $4 billion to $20 billion by 2025. In New Zealand, the market has the potential to grow to $250 million by 2025.
Ransomware, distributed denial of service (DDoS) attacks and state-backed cyberwarfare have proved to be major threats in recent years. A host of others are now emerging amid the rise of technology such as the Internet of Things and artificial intelligence.
Delta’s new research updates its 2015 white paper and details the risks around cyberattacks, and case studies from around the world.