Allianz launches cyber risk insurance product
Sydney, 31 March 2014
Cybercrime costs the Australian economy over $1 billion annually.
Cybercrime risk moved into the top 5 risks faced by Australian business in 2014 according to Allianz research; it wasn’t in the top ten in 2013.
In response, Allianz has launched a new Cyber Protect insurance product with cover up to $50 million to enable businesses to protect themselves against cyber criminals and data loss.
Businesses are being targeted by criminals using highly sophisticated cyber attacks such as denial of service (DoS), botnets, worms, spear phishing and drive-by exploits. Cyber crime and data breaches cost the global economy around $120 billion annually and are considered one of the top emerging risks for the 21st Century.
In response to the growing cyber criminality threatening both corporate and small to medium enterprises (SMEs), Allianz Global Corporate & Specialty (AGCS) has launched Allianz Cyber Protect to the Australian market to enable businesses to protect themselves against cyber criminals, data loss and the potential ramifications.
According to Holger Schaefer, General Manager of AGCS Pacific, “all businesses need to review their vulnerability to cyber attack and the financial and reputational damage it may cause.”
“Companies are facing attacks on a daily basis and firms, such as online retailers that have a critical dependency on digital networks, may not be fully aware of how a cyber attack could be fatal to their business. Many cyber criminals are now hacking into the systems of SMEs as a way of ‘piggy-backing’ access to the systems of the larger companies they partner with.”
Allianz’s 2014 Risk Barometer report found that, for Australia, the risks associated with cyber crime, IT failures and espionage ranked fifth in terms of the risks facing Australian business. This category of risk did not even make the top ten in the 2013 survey. Loss of reputation/brand value ranked third in 2014, up from fifth in 2013.
Allianz is offering a comprehensive suite of three insurance products to address various first and third-party liability issues that can arise from a serious cyber attack or data breach. Offering cover up to a limit of $50 million, Allianz Cyber Protect provides different levels of business interruption cover that can be tailored to the client‘s needs.
Allianz Cyber Protect clients also have immediate access to a crisis response team, which includes a panel of forensic IT experts who will work with them to manage a cyber incident.
Allianz has partnered with global consultants KMPG Forensic, Dell SecureWorks, Incoming Thought Ltd and E-merging Technologies Group Inc to provide this market-leading level of claims support.
Mr Schaefer added, “reputation is an intangible asset, yet it is a decisive factor in a business’s future success. Irreversible damage can be done to a brand’s reputation if they do not have risk management and mitigation strategies in place to combat a data breach. Moreover, the digital age has increased vulnerability with the potential for reputational harm via social media, which can carry information across the globe instantly. Allianz’s product suite includes the costs of crisis communication for the purpose of safeguarding the company's reputation.”
Large General Insurance Company of the Year 2013, 2012, 2011, 2009*
General Insurance Company of the Year 2012, 2010, 2007,2006**
Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services to more than 2 million policyholders. Over 50% of Australia’s top 200 BRW-listed companies have some form of insurance cover with the group and the group provides workers compensation services to around one-fifth of Australian employees.
*Australia & New Zealand Insurance Industry Awards
**Australian Banking and Finance Insurance Awards