Stakeholders get thinking as cyber risks poses increased threat to business
The growing risks of cyber hackers and threat on businesses are getting stakeholders thinking, as losses are recorded globally.
Insurance are deeply concerned because the own businesses the responsibility for protection using insurance as the only effective means of risk management tool.
Meanwhile, Africa Re has begun raising awareness on the emerging cyber risks in the business environment in the continent.
During a cocktail hosted by Africa Re in Lagos in collaboration with Allianz Global Corporate Solutions (South Africa), Ken Aghoghovbia, deputy managing director/COO of Africa Re, emphasized that Africa Re “will continue to play a leading role in finding solutions to new challenges from emerging cyber risks in the continent and will partner with Allianz in creating awareness of cyber risks and the insurance solutions available in the market place.”
Three other speakers shared their thoughts on this topical issue via PowerPoint presentations. The first presentation, entitled Cyber Threats Landscape and the Reinsurance/Insurance industry was delivered by Aly Seydi, Africa Re’s Director of Information & Communication Technology. He spoke on the emergence and increasingly significant impact of cybercrimes on the insurance industry. To highlight the vulnerability of a firm to this emerging risk, he stated that “ the biggest cyber security threats are inside your company…it comes from employees, former employees, contractors or business associates who have inside information concerning the organisation’s security practices.”
Berthran Ugeh, a partner of IBM Africa and Allianz, spoke generally on cyber security. He gave the example of ransom ware, a type of malicious software that threatens to publish the victim’s data or perpetually block access to it unless a ransom is paid. He also highlighted the dangers of free wifi, especially in the public domain, ticking terms & conditions without reading through and the main pain points in cyber security today.
Funmi Omokhodion, interim Regional Director of Anglophone West Africa Office of Africa Re ,approached the subject matter from an insurance perspective. She pointed out that “insurance is not a replacement for good cyber security. However, insurance could provide protection, if unforeseen incidents happen”.
She added that “At Africa Re, we do not just sell cover, we partner with you to ensure the risk is minimized. If an unforeseen event occurs, we work with you to restore your firm to full functionality”. She further stated that the insurance policy cover, may include “privacy and data breach, business interruption and restoration cost, network security claims, cyber extortion, media liability claim, regulatory cost/fines and penalties, response cost, crisis communication.”
The issues raised by the various speakers drew several questions from the audience, which the speakers including Nobuhle Nkosi of Allianz (South Africa) answered to the satisfaction of the market. The cocktail was attended by over one hundred insurance practitioners and other business executives in the economic capital of Nigeria.
Modestus Anaesoronye