Businesses urged to insure against cyber risk

Cyber security threats are a key issue facing the insurance industry

Delta Insurance, which claims to be the only NZ owned specialist liability underwriting agency, is ramping up its credentials in the cyber risk insurance market, releasing a white paper on technology liability and saying cyber security threats are likely to be the key issue facing the industry.

Its initiative comes just days after the head of the NZ arm of global insurance broker, Marsh&McLennan, hit out at the insurance industry for what he said was its tardiness in providing protections for cyber related risks.

Delta Insurance general manager Craig Kirk talked up the company’s cyber insurance credentials, saying sound risk management strategies which addressed new and evolving forms of risk should be at the forefront of protecting businesses.

“Tailored, up to date technology insurance policies aim to fill in the gaps of traditional and often out of date coverage and protect businesses from incurring substantial financial and reputational losses,” he said.

“Through proactive thinking, planning and innovation, we want to help ensure that New Zealand technology companies continue to grow and prosper so that they can remain at the forefront of the world stage.”

Kirk said the risk of cyber security threats was “probably the key issue facing the industry,” and that how technology companies tackled and managed this issue “would in some cases determine whether or not they have a viable and sustainable future.”

He said, that, in an increasingly globalised world, tech companies, which often rely on multi-regional interconnectivity, faced a host of potential problems that could endanger them.

“As New Zealand technology businesses continue to expand their operations in a more globalised world, their exposure to liability risks increases. … Operating in a more globally interconnected business world not only increases risks to more litigious overseas jurisdictions, but can leave businesses vulnerable to a greater amount of cyber-risk.”

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