World first cyber insurance launched

South Africa based, Intact Software Distribution yesterday announced the launch of World first cyber insurance product, MyCybercare, which is underwritten by Genric in Africa. The insurance cover is now available to Intact partners and customers, including corporate businesses, resellers, retailers, ISP’s, banks, online stores and brokers. Intact is also making MyCybercare available online via the MyCybercare URL, plus partner “white label” stores.

MyCybercare offers a financial protection solution that gives cover for financial losses incurred due to online cyber fraud. “In addition, due to the surge in Ransomware we’ve seen lately, a further key component has been launched – a ransomware insurance add-on to the current offering,” says Simon Campbell-Young, CEO of Intact Software Distribution. “Cyber criminals are well funded, and technically advanced. They have the most technologically advanced encryption and tools at their fingertips.”

At the same time, the increased sophistication and complexity of attacks is making defending against today’s threats a complicated and expensive exercise for organisations. Despite the fact that a plethora of security tools and solutions are available, they are simply not enough to defend and mitigate these attacks.

“It is crucial that businesses keep up with times in terms of technology when it comes to managing cyber threats. It is claimed that over $500-billion plus is lost to cybercrime annually, and that Southern Africa alone ranks third in the world for the number of hacked devices,” Campbell-Young says.

According to him, each year thousands of individuals and companies fall victim to cyber fraud around the world, meaning that criminals have stolen either personal or company information for the purposes of conducting transactions without their knowledge or consent. “Cyber fraud is a fast-growing scourge that can result in heavy financial and personal losses. It can be extremely expensive to restore not only credit but reputation as well. This is why cyber insurance is one of the fastest growing new pillars in the insurance industry.”

He says breaches can disrupt the smooth running of a business due to financial income loss and reputational damages that they bring. “A comprehensive cyber-attack insurance cover is essential for any organisation, as no one is safe from attacks. It is also a major challenge for insurance companies, as attacks are not specific to any sector or business.”

Traditionally, insurance companies have been responsible for managing risks, but because cyber crime is becoming more dangerous and damaging, a holistic and measured approach is needed to fight it. “In the face of insurers facing an all-time low retention rate, backed by growing customer demand and rising concerns about cybercrime, it is time that they adapt their systems accordingly in the fight against cybercrime. MyCybercare bridges the gap, providing individuals and businesses alike insurance against loss of funds as a result of cyber crime, while enabling insurers to stay ahead of customer needs,” Campbell-Young says.

“We will look to expand quickly across the globe, having recently completed a binder agreement with a large global underwriter. I encourage interested parties, looking to leverage regional growth in their relevant geography, to make contact with me directly,” he concludes.