CASSAVA Smartech Zimbabwe’s short-term insurance unit, Moovah, has become one of the first companies in the country to offer insurance for businesses against cyber-attacks.
This comes as remote work arrangements, caused by coronavirus-induced lockdowns across the world, have fuelled a surge in ransomware attacks and phishing activities – intrusive and often harmful attempts to steal, expose, alter, disable or destroy information through unauthorised online access to computer systems.
Moovah said its cyber insurance product will help businesses recover financially from cyber-attack costs that come about as a result of privacy breaches, data extortion, data leakages and similar cyber security threats.
“Any business that uses technology or collects data is at risk of a cyber-attack and the results can be catastrophic. Cyber-attacks could be in the form of an employee utilising digital systems to use or steal sensitive customer data, malware on your computer network, or even a hacker closing down your corporate website without your knowledge. That is why it is now more important than ever before, for companies to invest in cyber liability insurance to protect their businesses,” said Moovah.
Information communication technology (ICT) analysts believe that specialist cyber insurance is now an essential part of an organisation’s armoury against phishing e-mails, online fraud and extortion. This stems from the fact that traditional professional indemnity and management liability insurance policies are not designed to cover the new and evolving cyber risks and threats.
The latest cases in several countries show that even with the best security software that IT budgets permit, office networks are increasingly being targeted and often breached. One click on a rogue email by an unsuspecting employee will infect one or more workstations, opens the door to hackers to cause a data breach or demand cyber-ransom.
Moovah said its cyber insurance offers companies the certainty that there is someone to immediately call 24/7, to help them manage such attacks, offer legal advice, deploy forensics to scan the IS systems, manage customer concerns and to help deal with regulatory requirements.
The company’s cyber insurance is designed to pay for expenses of security specialists, attorneys, forensic investigators and loss adjusters to contain, manage and recover from an incident, crisis, management expenses, data recovery services and potential costs associated with network security and privacy breaches.
“In the wake of a cyber-incident, businesses often seek legal assistance. This assistance can be costly. Our cyber liability insurance can help businesses afford proper legal recourse following a cyber-attack,” Moovah said.
The 2021 Report on Cyberwarfare in the C-Suite predicts that cyber crime damages will amount to a staggering US$6 trillion annually.
ICT minister Jenfan Muswere recently said malicious cyber activity was increasing in frequency, scale, sophistication and also in impact, and called for increased measures to contain the phenomenon. He added that such activities harm the country’s national security and economic interests.
“We have seen reports of online predators engaging in identity theft and stealing money from consumers’ accounts, and misleading advertisements for people to deposit money in criminals’ accounts. As the government we would like to urge service providers and consumers to be aware of this threat and to be cautious at all times as online fraud is on the increase,” Muswere said.