Whether it’s caused by a intentional malicious intrusion, a technical failure or human error, every business is at risk of data leakage, ransomware and other attacks. Cyber incidents can result not only in data breaches, but also in disruption to a company’s business, fines and severe reputational damage. A single mistake, a single attack, can pose a company-wide risk and cause widespread economic damage.
WHAT IS CYBERSECURITY?
Cybersecurity involves the activities, tools and procedures needed to protect network and information systems and their users, as well as other individuals and companies affected by cyber threats.
A cyber incident is a technical failure, omission by negligence or deliberate attack on information and telecommunication systems.
Cyber insurance provides financial protection against the negative economic consequences of dealing with cyber incidents. Whether it’s a data theft, ransomware, or an attack that disrupts your business, insurance provides coverage for investigation costs, data recovery, data protection fines, and restoration of damaged business procedure. It also supports companies’ legal representation and communication management of incidents, helping to maintain a positive market image and reduce customer and business risk.
AGAINST WHAT DOES CYBER INSURANCE PROTECT?
WHO NEEDS IT?
HOW COMMON ARE CYBER INCIDENTS?
According to a survey by Sophos, a security software and hardware company, one in five Hungarian businesses will be cyber attacked in 2023. 39% of Hungarian companies attacked by ransomware decided to pay the ransom.
Half of the companies paid less than 10 million HUF, 29 percent paid between 10 and 50 million HUF, 13 percent paid between 50 and 100 million HUF, while 8 percent paid more than 100 million HUF.
OTP Bank phishing attacks: in recent years, OTP Bank has repeatedly warned its customers about phishing emails and SMS messages in which fraudsters try to obtain confidential data falsely on behalf of the bank. The specific incidents are rarely disclosed, but the bank’s cyber insurance always plays an important role in dealing with such incidents and covering any potential damage.
Distributed Denial-of-Service (DDoS) attacks against governmental and financial institutions: in 2021, several Hungarian governmental and financial institution’s websites were target of DDoS attacks, which made the sites temporarily unavailable. Cyber insurance covered the costs of recovery efforts and the hiring of technical experts.
Municipalities ransomware attacks: in 2020, several Hungarian municipalities’ IT systems were hit by ransomware attacks, with attackers encrypting data and demanding a ransom for recovery. In the case of municipalities with cyber insurance, the insurance companies covered the recovery costs and expert support.
Lithuanian plastic surgery: A laptop was stolen in a burglary and the highly sensitive medical data of patients at the private clinic was accessed without IT difficulties. The scandal caused the clinic to lose clients and its operations to become unviable, and the business was wound up.
Shields Health Care Group data breach: due to the company’s own negligence, the data of around 2 million individuals was leaked, including names, addresses, social security numbers, bank card details and other sensitive information.
NHS WannaCry attack: the UK’s National Health Service (NHS) has been hit by the WannaCry ransomware attack campaign, causing disruption to several hospitals. The attack has caused surgeries to be cancelled and patient care to be disrupted. The cybersecurity insurances of institutes played a significant role in mitigating the damages and restoring the systems.
Maersk ransomware attack: one of the world’s largest transport companies has also fallen victim to the WannaCry attack. The cyber incident caused a significant loss of business, with the company estimating a loss of around 300 000 000 USD. Maersk had cyber insurance in place to help cover recovery costs.
HOW CAN WE HELP?
Via our international network of brokers, we offer our clients the best cyber insurance products and services. We have access to the network’s international expertise and with our strong domestic and international insurance relationships, we provide a full range of risk management and insurance solutions.
Our insurance partners are solely market-leading companies with a solid financial background, the highest underwriting capacity in the market and more than 10 years of professional experience in cyber and data protection insurance.
We provide a high level of support to our clients with fast and simplified contracting and claims management process, proactively handling administration and the liaising with insurers.
We help you to ensure that your business is as secure as possible and minimise the financial risks from cyber incidents and regulatory obligations.
