Kiwi businesses prove slow to take up cyber insurance

A recent survey by Symantec, the company responsible for Norton Antivirus, has revealed that small businesses in New Zealand are failing to protect themselves with the right cyber insurance. In a world where cyber attacks are becoming a constant source of concern for everyone from health providers to big data specialists, why is New Zealand lagging behind?

 

The missing link for insurance

According to the survey, only about 6 per cent of small businesses have invested in cyber insurance, with a further 30 per cent considering doing so in the new year. This is a dangerous situation for Kiwis to be in, considering that almost one in five of our small businesses have experienced some form of cyberattack. This could be malware, ransomware, a malicious virus or even a hacking attempt.

"Cyberinsurance is an emerging trend as it presents an avenue for small businesses to become more resilient to a wide range of cyber risks and the costs associated with data breaches and business interruption. It can be a business's safety net when all else fails," explains Mark Gorrie, Director of the Norton Business Unit for the Pacific Region.

 

Why are Kiwis so slow to take up cyberinsurance?

There are a fair few things that New Zealand's relative isolation protects it from, and that includes cyber attacks - to a certain degree. In comparison to the United Kingdom, for example, cyber attacks are in fact relatively low. 18% per cent of businesses in New Zealand reported suffering a security breach in 2015 compared to 74% of UK businesses.

However, the reality is that while we may be less of a target than larger economies, cyber attacks are still on the rise.  It is not mandatory by law to report cyber incidents in New Zealand so numbers are conservative and a 2016 PwC survey found that cybercrime is now the joint second most-frequently reported economic crime. In 2014, it was only the fifth.

Combine this with the fact that only 45 per cent of New Zealand organisations have a cyber incident response plan and the apparent lack of cyber insurance, and it's clear there is a gap in protection for Kiwi business. 

 

You can solve that with a good cyber insurance policy.  It's a relatively new insurance cover and many insurers are still working towards offering a robust cyber insurance plan.  Rothbury can help you find the cyber solution that is right for your business needs. Get in touch with us today.

 

Watch our 1 min videos on Cyber Insurance

What is cyber crime?

How can cyber crime cost my business?

What does cyber insurance cover?


Guy Worsley

About the Author

Name: Guy Worsley        

I am a Commercial Broker at Rothbury Auckland. My 18 years experience both in New Zealand and international markets coupled with my high service standards means that I can help clients navigate their way through the complicated insurance…
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I am a Commercial Broker at Rothbury Auckland. My 18 years experience both in New Zealand and international markets coupled with my high service standards means that I can help clients navigate their way through the complicated insurance landscape.

My clients come first. It’s vital to spend time understanding my clients’ business before I provide advice. This advice is assured as I have wide knowledge and experience of liability, professional risks, property motor and marine insurance.

Plus, I am proud of my proven ability to negotiate win : win claim solutions and advise on technical insurance matters.

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Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.

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