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Cyber Exposure and Insurance

Published on: 24 March 2022 by Michael Lamb

Cyber Crime is more common than you may realize.

According to a recently released report by the United States’ Federal Bureau of Investigation cyber crime losses increased in 2021, growing to USD$6.9 billion from USD$ 4.2 billion in 2020. The biggest losses came from compromised business emails, with investment and internet based confidence (or relationship) scams representing the third biggest portion of cyber crime losses experienced last year. 

On top of the recently released Cyber Crime report; in the wake of the Russian Invasion of Ukraine, the FBI and other digital watchdogs are raising an alarm over an expected increase in global digital crime.

With everything that is going on in the world right now, the year 2022 is expected to see some of the highest levels of cyber crime in history. From targets of opportunity, through to selected victims who were chosen on purpose, dealing with the modern internet comes with a significant degree of risk.

Cyber Insurance can help you manage those risks. 

Cyber Insurance Protection

Cyber Insurance is the name given to a type of coverage designed to protect you, and your business, against the many risks you’ll encounter online. With the increase in Cyber Crime, becoming the victim of a cyber attack is not a question of “if,” but rather “when.”

Cyber insurance recognizes that no two companies will have exactly the same needs or requirements, and provides a number of options from which the policyholder can tailor their coverage. This ensures that the cyber insurance product being purchased by the policyholder offers the correct types and levels of protection.

Some of the coverage benefits available for selection under a Cyber insurance policy include:

  • Electronic Vandalism Losses and Recovery
  • Electronic Business Interruption Costs
  • Privacy Notification Costs
  • Rewards and Crisis Management Expenses
  • Electronic Threat Losses
  • Disclosure Liability Protection
  • Content Liability Coverage
  • Reputational Liability Coverage
  • Impaired Access Liability protection

Most Cyber Insurance products offered by CCW Global in Hong Kong will allow you to select the benefits you require coverage for. A financial SME would require Privacy Notification costs coverage due to regulatory requirements, where a company making T-shirts would not be required to take such protection.

This means that Cyber Insurance works to fit the specific needs of your organization, working to overlap any gaps in your more traditional forms of insurance protection.

Cyber Crime is Happening

If you’re looking for a reason as to why you or your organization should obtain Cyber Insurance, then look no further than the FBI report we linked to at the start of this article. Particularly with relation to law enforcement Recovery Asset Teams (RAT).

Of the 1726 incidents the FBI RAT team worked, they were only successful in recovering lost assets in 74 percent of cyber-crimes. This means that even if your business alerts the correct law enforcement agency and attempts to catch the cyber criminals, there is still a significant chance that you will be facing major financial exposure after a digital attack.

Cyber Insurance works on top of your legal options to ensure that if you or your organization are the victims of a cyber event, then you will have the assistance you need. This means even if your internal corporate networks are seized in a ransomware event, or you HR manager has had their passwords phished, you will still be covered under your insurance policy. This extra level of protection ensures that no matter what may happen to your company’s internal systems and networks, you will always have the support you need.

Free Cyber Insurance Quotes in Hong Kong

If you would like to receive a free quote for any of the cyber insurance products offered by CCW Global in Hong Kong, simply complete the short form at the top of this page. Alternatively, you may Contact Us to directly discuss your cyber insurance needs with an expert business insurance broker. 



Author: Michael Lamb

Michael Lamb is an insurance industry professional with many years of experience within the Hong Kong Insurance market. Focusing on APAC coverage issues, Michael is able to provide extensive analysis and insight to a range of pressing topics. Previously, Michael provided insurance broker Globalsurance.com with their most highly valued articles and was a key influence in the development of all the content on Pacificprime.com, Michael has a passion for insurance matched by few others in the region.

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