Zurich – the ins and outs of cyber risks

Zurich Cyber Risk

Cyber risks

Zurich Cyber Insurance

Cyber insurer Zurich‘s Global Head of Special Lines Lori Bailey has published an article outlining the ins and outs of cyber risks.

See where cyber risks originate, how they accumulate and how they can derail mission critical aspects at every level of your business.

kh-image-the-ins-and-outs-of-cyber-risks

The consequences of cyber risks can disrupt critical business infrastructure and derail productivity at the operational level. Here’s a complete look at where they originate, what they target and their consequences.

Cyber Risk Sources

  • Human error accounts for 52 percent of cyber breaches, according to a study by CompTIA.
  • Creating resilience to cyber risks requires focus on educating and training employees

kh-image1-the-ins-and-outs-of-cyber-risks

CyberRisk Targets

  • Indirect targets of cyber encroachments are as significant as direct targets.
  • Access to financial information, for example, could put at risk the financial information of a private company that is a customer.
  • This underscores the need for a holistic view of cumulative cyber risks.

kh-image2-the-ins-and-outs-of-cyber-risks

CyberRisk Consequences

  • The consequences of cyber risks are not limited to lost data.
  • Transactions can fail; supplies or products can be misdirected.
  • Manufacturing can be halted or output faulty goods; safety issues can cause injuries.
  • Dissatisfied customers can turn elsewhere.

kh-image3-the-ins-and-outs-of-cyber-risks

Source: Zurich

Speak to one of Insure 247’s brokers on 1300 046 787

Please note Cyberliabilitycomparison.com.au Insurance News is an information service sometimes provided by third parties Insure 247 Australia doesn’t warrant the accuracy of any information contained therein, readers should make their own inquiry’s before relying on information in the stories Terms of Service

Cyber Insurance Comparison

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on the inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation, and needs

 

Google protecting the world's news from digital attack

Google Project Shield

Google in it’s daily blog has outlined what it see’s as a risk for Independent News Services – DDoS attacks are often used to attempt to censor news, human rights, and elections monitoring sites, and to bring down many other types of sites. Sites that are not using a content delivery network (CDN) or a major hosting provider often do not have the capacity to defend against these attacks.

 

The web is an increasingly critical tool for news organizations, allowing them to communicate faster, research more easily, and disseminate their work to a global audience. Often it’s the primary distribution channel for critical, investigative work that shines a light into the darkest corners of society and the economy—the kind of reporting that exposes wrongdoing, causes upset and brings about change.

Denial of service (DDoS) attack

Unfortunately there are some out there who want to prevent this kind of reporting—to silence journalism when it’s needed most. A simple, inexpensive distributed denial of service (DDoS) attack can be carried out by almost anyone with access to a computer—and take a site completely offline before its owners even know they’ve been attacked.

These attacks threaten free expression and access to information—two of Google’s core values. So a few years ago we created Project Shield, an effort that uses Google’s security infrastructure to detect and filter attacks on news and human rights websites. Now we’re expanding Project Shield beyond our trusted testers, and opening it up to all the world’s news sites to protect them from DDoS attacks and eliminate DDoS as a form of censorship.

Read More

Source Google

Please note Cyberliabilitycomparison.com.au Insurance News is an information service sometimes provided by third parties Insure 247 Australia doesn’t warrants the accuracy of any information contained there in, readers should make their own enquiry’s before relying on information in the stories Terms of Service

Compare Australian Cyber Insurers

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs

 

 

First ever OS X ransomware encrypts your data and asks for money

Safety concept

First ever OS X ransomware

Ransomware is a particularly nasty piece of malware: After your computer is infected, it encrypts your data and refuses to give you the key unless you pay its makers a sum of money. Save for any glaring mistakes in the malware’s implementation, paying up is usually the only feasible way to get your data back, especially if you don’t have a backup.

Now, according to security company Palo Alto Networks, the first functional ransomware that operates on Apple’s OS X has been discovered.

Read More

Source mashable.com

Compare Australian Cyber Insurers

Please note that any advice given has been provided without taking into account your objectives, financial situation or needs. It is also based on information we have obtained from you. You must ensure the information is accurate and complete. Otherwise, this advice may be based on inaccurate or incomplete information. You should consider whether the advice is appropriate in light of your objectives, financial situation and needs

Businesses must prepare for new generation of cyber risks

Prepare for a new generation of cyber risks

Businesses must prepare for a new generation of cyber risks which are fast evolving, moving beyond the established threats of data breaches, privacy issues and reputational damage to operational damage, business interruption and even potentially catastrophic losses.

In a new report – A Guide to Cyber Risk: Managing The Impact of Increasing Interconnectivity – specialist insurer Allianz Global Corporate & Specialty (AGCS) examines the latest trends in cyber risk and emerging perils around the globe. Cyber risk is a major and fast-increasing threat to businesses with cyber-crime alone costing the global economy approximately $445 billion a year, with the world’s largest 10 economies accounting for half this total. In Australia, cyber risk is estimated to cost the economy 0.08% of GDP per year, or approximately $1.3 billion.

“As recently as 15 years ago, cyber-attacks were fairly rudimentary and typically the work of hacktivists, but with increasing interconnectivity, globalization and the commercialization of cyber-crime there has been an explosion in both frequency and severity of cyber-attacks,” says AGCS CEO Chris Fischer Hirs.

“Cyber insurance is no replacement for robust IT security but it creates a second line of defence to mitigate cyber incidents. AGCS is seeing increasing demand for these services, and we are committed to working with our clients to better understand and respond to growing cyber risk exposures.”

Tougher regulatory regimes and new cyber perils

Increasing awareness of cyber exposures as well as regulatory change will propel the future rapid growth of cyber insurance. With fewer than 10% of companies currently purchasing cyber-specific policies, AGCS forecasts that cyber insurance premiums will grow globally from $2 billion per annum today to over $20 billion over the next decade, a compound annual growth rate of over 20%.

“Growth in the US is already underway as data protection regulations help focus minds, while legislative developments and increasing levels of liability will see growth accelerate in the rest of the world,” says Nigel Pearson, who is globally responsible for cyber insurance at AGCS.

“In Australia, the Federal Government has stated that it will introduce a mandatory data breach notification scheme by the end of 2015 or in early 2016, which is expected to drive interest in cyber insurance. Regional AGCS CEO, Holger Schaefer, stated “we have already seen a significant increase in cyber insurance inquiries as boards of directors become more aware of their regulatory and operational exposures to cyber risk.”

Previously, attention has largely been focused on the threat of corporate data breaches and privacy concerns, but the new generation of cyber risk is more complex: future threats will come from intellectual property theft, cyber extortion and the impact of business interruption (BI) following a cyber-attack or from operational or technical failure; a risk which is often underestimated.

“Awareness of BI risks and insurance related to cyber and technology is increasing. Within the next five to 10 years BI will be seen as a key risk and a major element of the cyber insurance landscape,” says Georgi Pachov, cyber expert in AGCS’s global property underwriting team.

In the context of cyber and IT risks, BI cover can be very broad including business IT computer systems, but also extending to industrial control systems (ICS) used by energy companies or robots used in manufacturing.

Connectivity creates risk

Increasing interconnectivity of everyday devices and growing reliance on technology and real-time data at personal and corporate levels, known as the ‘Internet of Things’, creates further vulnerabilities. Some estimates suggest that a trillion devices could be connected by 2020, while it is also forecast that as many as 50 billion machines could be exchanging data daily. ICS are another area of concern as a number of these still in use today were designed before cyber security became a priority issue. An attack against an ICS could result in physical damage such as fire or explosion, as well as BI.

Catastrophic event

While there have been some very large data breaches, the prospect of a catastrophic loss is becoming more likely, but exactly what it will look like is difficult to predict. Scenarios include a successful attack on the core infrastructure of the internet, a major data breach or a network outage for a cloud service provider, while a major cyber-attack involving an energy or utility company could result in significant outage of services, physical damage or even loss of life in future.

Stand-alone cover

Allianz also predicts that the scope of cyber insurance must evolve to provide broader and deeper coverage, addressing business interruption and closing gaps between traditional coverage and cyber policies. While cyber exclusions in property and casualty policies are likely to become commonplace, standalone cyber insurance will continue to evolve as the main source of comprehensive cover. There is growing interest among the telecommunications, retail, energy, utilities and transport sectors, as well as from financial institutions.

Education – both in terms of businesses’ understanding of exposures and underwriting knowledge – must improve if insurers are to meet growing demand. In addition, as with any other emerging risk, insurers also face challenges around pricing, untested policy wordings, modelling and risk accumulation.

Responding to cyber risk

The AGCS report highlights steps companies can take to address cyber risk. Insurance can only be part of the solution, with a comprehensive risk management approach being the foundation for cyber defence.

“Once you have purchased cyber insurance it does not mean that you can ignore IT security. The technological, operational and insurance aspects of risk management go hand in hand,” explains Max Broodryk, expert for cyber at AGCS Pacific.

Cyber risk management is too complex to be the preserve of a single individual or department, so AGCS recommends a ‘think-tank’ approach to tackling risk whereby different stakeholders from across the business collaborate to share knowledge.

In this way, different perspectives can be challenged and alternative scenarios considered: for example, these might include the risks posed by corporate developments such as mergers and acquisitions or by the use of cloud-based or outsourced services. In addition, cross-company involvement is essential to identify key assets at risk and, most importantly, to develop and test robust crisis response plans.

For more information and to download the full report please go here.

Source Allianz

[pardot-form id=”489″ title=”Cyber Insurance”]