The news shows how cyberattacks have become mainstream. The Swiss press refers to “successful” attacks, both against large financial institutions and public authorities. Overview of the current situation with our Financial Lines Specialist,Stephanie Pennacchio.
In terms of risk management, there is no doubt that organisations still have to make progress, particularly in terms of flaws arising from individual behaviour, such as breaches of security rules, but also in the implementation of an arsenal of effective IT measures (firewalls, antivirus and others). However, we know that this will not be enough, as it is no longer a question of whether attacks will take place, but rather when!
A critical current situation
Whereas previously hackers took a dispersed approach with methods such as sending thousands of phishing emails, they now target their attacks better and more specifically, by reading balance sheets and focusing on defined areas.
What about insurance? A tool allowing the transfer of part of your risk, it is not easy to obtain such a guarantee.
The international market is now saturated and the conditions for obtaining coverage have become more stringent. Companies have even sharply reduced the amount of cyber coverage they offer their clients after the pandemic and working from home led to an increase in ransomware (ransom) attacks. The health crisis has had a strong impact in this area. Premiums are increasing (up to 300% in some cases), coverage is decreasing and sometimes these two phenomena happen simultaneously.
Cyber insurance is under pressure and scrutinised worldwide
Although the situation is indeed complicated for international programmes, there are still more local solutions for our SMEs today. But for how long? New insurance products have been created by local players who can still offer solutions, even partial, to ensure the sustainability of an organisation following an attack.
First, there are a few steps that you will need to go through, which vary greatly from company to company. The following elements will enable insurers to decide whether to accept the risk and, if so, under what conditions:
- Type of activity;
- Turnover and share of e-commerce;
- Geographical distribution;
- Number of employees;
- Technical and operational IT security measures.
In other words, it is still possible to submit a request for quotation to find a cyber solution, but it is not straight forward.
Find out more
Discover the latest news on the subject:
- “Insurers run from ransomware cover as losses mount” by Reuters;
- “Cyberassurance: comment les entreprises se protègent et à quelles conditions” by Le Temps.
Your contact
In this situation, and in our desire to always provide the best possible support to our clients, we believe that it is our responsibility to make you aware of this issue and, if desired, to support you in this process.
If you have any questions, please do not hesitate to contact our Financial Lines Specialist, Stephanie Pennacchio (spennacchio@loyco.ch), or your usual contact at Loyco.