Facing Increasing Cyber Threats Securely

On October 14 the Hong Kong Computer Emergency Response Team Coordination Centre recently revealed that it had managed a staggering 10,583 cyber events in the past 12 months. Representing an increase of roughly 39 percent more cyber crime events, the Centre’s numbers from 2023 indicate there is a significant rise in the overall rates of cyber-crime in the city. Added to this is the report from The Hong Kong Police Force that they recorded a total 34,112 technology related crimes in 2023, and a stark picture begins to emerge.

As the tools available to cyber-criminals continue to evolve, so too will the crimes caused by those criminals. With the emergence, and seemingly universal prevalence, of Artificial Intelligence tools we can expect an acceleration in the frequency, number, and creativity of digital crimes. This carries with it no small degree of risk for local and international businesses – as the question becomes less “what to do if we suffer a cyber event,” and more “what should we do when we suffer a cyber event?”

There is no magic bullet to solving the issue of cybercrime. And even with the most secure networks and patched digital infrastructure, there is no guarantee that an organization will avoid falling victim to a cyber event. There are, however, ways to be prepared and ensure that vital assistance is on hand to help you when you need it to.

One of these avenues for digital risk management is via comprehensive Cyber Insurance.

What is Cyber Insurance?

“Cyber Insurance” is the name given to the many types of coverage that protect businesses from the losses occurring due to malicious 3^rd party activity or “attacks.”

It is extremely important to note that Cyber Insurance is not a form of Professional Indemnity or Errors & Omissions Insurance; this is to say that cyber insurance is not designed to provide support in the event that you or your company have made a mistake in your work, or provided faulty software to a client.

What Cyber Insurance does cover is your losses due to things like:

• Website Vandalism
• Digital Threats, including the threat of a hack
• Digital Business Interruption Expenses
• Crisis Management Expenses and Support
• Privacy Regulation Expenses
• Reward Fees
• Digital Ransoms

“Cyber Insurance” is not a one-size-fits-all solution.

This type of insurance protection is usually customized to meet the specific needs of the individual or company purchasing the policy. This means that if a business does not have a website or digital store, it may not make sense to include website vandalism coverage in the policy.

This flexibility means that you are able to obtain the exact coverage you need, for the risks you need to protect against. But it also means that the wide range of options can be confusing, and purchasing the right product a challenge.

In many cases it is possible to extend a Cyber Insurance policy to include a range of additional 3^rd party cyber liability risks. These benefits can include:

• Disclosure Liability
• Impaired Access Liability
• Reputational Liability
• Conduit Liability
• Content Liability

Whether or not you will need to include additional cyber liability coverage is going to be largely dependent on the activities of your organization, and if you want to pay the higher premium associated with more comprehensive cyber protection.

Why Should a Company Buy Cyber Insurance?

Most companies are doing their due diligence when it comes to cyber risks – from IT departments making sure all employees are using the latest, secure versions of software through to external vendors managing phishing tests – there is a great deal that an organization can do to prepare for an mitigate any possible cyber event.

However, with the sheer number of attempted attacks and the variety of tools available to cyber criminals, even the best defended network is at risk. In a world driven by computers, there is still the human element to consider. Despite all the training in the world, employees can be fooled by an innocuous email that looks like its from a trusted vendor, or they may visit the wrong website on a work PC because the sysadmin forgot to update the blacklist. Simple mistakes can happen, but when it comes to cyber-crime, those mistakes could mean costly consequences.

The ways in which bad actors can cause cyber damage are myriad and varied. This was true in a pre-AI world, but now with the rapid development of Artificial Intelligence tools the options available to a driven cyber-criminal have exploded. This means that future threats are going to be far less predictable and, as a consequence, much harder to prevent and overcome. Even with extensive information technology security protocols, and employees who are trained and on guard to overcome a malicious cyber threat, there is no guarantee of avoiding the full brunt of any incident.

Simply put, Cyber Insurance provides companies with the resources needed to overcome a successful cyber-attack. The most challenging aspect of a cyber-attack is often recovering from the incident – at a time when resources will likely be stretched extremely thin, and management will be facing critical and time sensitive decisions, Cyber Insurance is in a position to provide vital financial assistance, and offer the expertise of a dedicated team of crisis managers.

Cyber Insurance is insurance for the digital age, and is often left out of many companies’ risk management portfolios. But as the cost associated with cyber crime continues to grow, overlooking this vital component of a comprehensive corporate insurance umbrella is not a risk companies can continue to take.

Hong Kong Cyber Insurance Advice

Cyber Insurance comes in many different forms – all businesses and companies are going to face different digital risks, so building the right coverage for your organization is important. With the increasing threat of cyber crime towards Hong Kong businesses, it is likely that your company will face a digital threat sooner rather than later. Being prepared is critical, and cyber insurance can help support you in a worst-case situation.

For more information about Cyber Insurance products for businesses in Hong Kong, or to learn more about the diverse business insurance policies offered by CCW Global, please Contact Us Today to arrange a free consultation with an expert broker.

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