Financial solution for cyberattacks should entail cyber insurance
Horace C. White
Modern Tokyo Times
Cyberattacks impacting well-known brands
In December 2018, the Modern Tokyo Times reported that one of the world’s leading hotel chains, Marriot International, came under heavy cyberattacks. In the report, the Modern Tokyo Times pointed out that the unknown cyber assailants compromised the personal data of over 500 million customers of the global hospitality industry’s trailblazer. This attack has, nonetheless, made the U.S.-owned hotel chain to lose an immeasurable amount of guests’ information to masked hackers. In his reaction, U.S. president Donald Trump noted that the cyberattacks were state-sponsored, insisting that China was behind it. The Chinese authorities, on the other hand, denied any wrongdoing. While the blame game continues, The Marriot Hotel brand now lives with a battered, reputation, perhaps.
Cyberattacks are a major world threat
Aside from Marriot International, lots of other organizations around the world have continued to suffer cyber incursions of enormous proportions. From New York to Frankfurt, from London to Kuala Lumpur, from Brasilia to Johannesburg, organizations and their customers continuously fall prey to cyberhackers. These data thieves mysteriously bypass firewalls and antiviruses. Afterward, they steal an organization’s data with phishing tools. Consequently, chief information officers (CIOs) of blue-chip companies have been kept on their toes. Beyond CIOs, individuals also have the same challenge to deal with.
Some shocking statistics
From the United Kingdom (UK) Threat Report statistics, 88% of the organizations based in the UK witnessed a surge in cyber invasions on their networks in a one-year period. In a similar vein, popular antivirus developer Avast disclosed that 55% of PC applications are outdated, making such users vulnerable to cyberattacks. Also, computer users around the world, one report states, are likely to lose $5.2 trillion in the next five years. In addition to that, 55% of large corporations have felt the obnoxious impact of the attack while some 53% of small-scale businesses have had to deal with this challenge. These figures are, in truth, worrisome.
Is cyber insurance the solution?
Today, cybercrimes have resulted in huge fines and legal fees. And expert projections say that it can only get worse. As experts continue to forecast the likely increase of this undesirable phenomena, it has become expedient that people and organizations take concrete steps to contain its impact. However, what has remained rather difficult to figure out is a lasting solution. Evidently, this menace is festering at an alarming rate, and it must cease immediately. At this juncture, it is critical that the companies and people consider purchasing cyber insurance as a solution.
What is cyber insurance?
Also called cyber liability insurance coverage (CLIC) and cyber risk insurance, cyber insurance helps people and organizations to mitigate the impact of cyberattacks by helping them to offset huge losses emanating from such attacks. The concept of cyber insurance began to take shape when organizations started keying into it in 2005. According to experts at London-based professional services company PricewaterhouseCoopers (PWC), over 30% of U.S.-based companies have subscribed to one cyber insurance package or another.
What does cyber insurance cover?
Obviously, the best bet for people and companies is to acquire cyber insurance cover as they are increasingly exposed to cyberthreats. When a company subscribes to such coverage, it enjoys certain benefits. These benefits include:
- Legal fees and expenses
- Repairs of damaged computers
- Breached data recovery
- Sending notifications to customers on data theft
- Restoration of personal identifies of affected persons.
Therefore, companies must begin purchasing cyber insurance as a solution to stopping cybercriminals and their cyberattacks.
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