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Cybercrime and Cybersecurity Insurance

Owner's Profile

Staff Writer, TLR

Published on July 14, 2023, 17:41:00

114

UAE, Dubai, cybercrime, cybersecurity, insurance, underwriters,

The UAE has been a digital innovator since its founding. It leads the Arab world with respect to its digital progress and preparedness for the future and has earned a name as one of the most tech-savvy countries in the world. It has been quick in adapting to digital transformation and new technologies at breakneck speeds; both in the government and private sectors. And so, cyber safety and digital security are serious issues in the UAE. Transmitting and disclosing communications, eavesdropping, clicking photographs of others, storing or publishing them without consent etc. are a few of the issues faced. UAE aims to enhance the level of protection from online crimes committed through the use of information technology, networks and platforms. It further seeks to protect the UAE’s government websites and databases, combat the spread of rumours and fake news, safeguard against electronic fraud and maintain privacy and personal rights. This showcases the need and importance of cybersecurity insurance in a country like the UAE.

Cybersecurity Insurance is a contract that your business organisation or company can purchase to reduce the financial losses and risks involved in e-transactions and be protected from ransomware attacks, data breaches, hacking etc. It generally covers the Organisation’s liability for a data breach involving sensitive customer information, such as social security numbers, credit card numbers, account numbers etc. It helps companies comply with state regulations that require, a business to notify customers of a data breach involving personally identifiable information. It includes the cost of notifying your customers, investigating the incident, providing credit monitoring services, cover legal fees or settlements in case of a suit. It will also help to evaluate your systems, offer advice on how to protect your data, and connect you with additional security partners. Companies should choose wisely and closely review policy details to ensure it contains the necessary protections against known and emerging cyber incidents and threat profiles. Most policies include first-party coverage, which applies to losses that directly impact a company, and third-party coverage, which applies to losses suffered by others from a cyber event or incident. Businesses that create, store, and manage electronic data online, such as customer contacts, customer sales, credit card numbers etc., can benefit from this insurance. Cybersecurity Insurance does not cover predicted, potential or future loss, business devaluation due to theft of IPR, costs incurred in improving your technology and systems internally following a cyber-event (software or security upgrades purchased and installed), physical damage to your hardware or any money lost in response to any phishing attack.

There is an international push for cyber insurance as the Regulators worldwide are encouraging businesses to improve their cybersecurity in return for more coverage at more affordable rates. Companies that buy cybersecurity insurance today are considered early adopters as it is a new, trending and emerging industry. Underwriters of cybersecurity insurance policies have limited data to formulate risk models to determine insurance policy coverages, rates, and premiums. However, the Cybersecurity market is still young, and many companies are choosing to let go of this type of insurance because of its uncertain return on investment.

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