MSIG Insurance (Malaysia) Bhd “(MSIG Malaysia)”, has launched Cyber SafeGuard, an insurance product designed to protect businesses of all sizes from the growing range of cyber risks proliferating in the ASEAN region.
In addition to the standard financial protections provided by most forms of insurance, Cyber Safeguard goes further by providing customers with immediate access to expert operational and technical support in the event of a security breach.
MSIG collaborated with renowned cyber insurance specialist MS Amlin, who, like MSIG, is a member of MS&AD Insurance Group – one of the largest general insurance groups in the world – to offer this insurance. MS Amlin has worked closely with an established international law firm to assemble a panel of cyber security specialists that are available to immediately provide customers with comprehensive operational assistance in the event of a cyber-attack.
CyberSecurity Malaysia, the national cyber security specialist and technical agency under the purview of the Ministry of Science, Technology and Innovation (MOSTI), recently reported 2,977 cyber security incidents involving fraud, intrusion and malicious code had been recorded in Malaysia between January and April 2019.
Mr. Chua Seck Guan, Chief Executive Officer of MSIG Malaysia, said, “Cyber security is a growing concern, particularly for small and medium sized businesses who are being increasingly targeted. While most big listed companies now have decent cyber security systems in place, many smaller businesses do not have the same level of resources to dedicate to security. Cyber criminals often see SME’s as potential stepping stones into the systems of their larger customers in the supply chain.”
He continued, “For example, we have seen a growing tendency of cyber-criminals to focus on smaller professional services businesses, such as accounting and law firms, in order to use their data for extortion and espionage purposes. Online retailers have always been a target, but now hackers are extending their net to healthcare, education and even food and drink companies in order to harvest potentially sensitive customer data. The potential costs of dealing with such breaches has risen significantly in the wake of increased personal data protection legislation in many markets. This means that any Malaysian firm with international customers could potentially face massive legal claims in the event of a data breach. The costs of dealing with a cyber security incident – particularly for SMEs – could have a major impact on cash flow and potentially ruin businesses completely.”
“Today’s hackers have greater level of sophistication than in the past. They are now more focused and will often spend much more time inside company systems and the longer a company is exposed the more the eventual cost rises. That’s why the insurance we offer not only provides companies with financial backup, but also provides them with access to first class technical support to help investigate, respond, restore and recover. In fact, many clients are purchasing the insurance as much for the ability to access our world-class panel of cyber-security experts as for the financial peace of mind that it provides.”
MSIG’s standard Cyber SafeGuard cover includes support for the appointment of an expert IT forensics company, the cost of a public relations consultant to assist with the management of any reputational damage, the cost of a legal firm to advise on legal obligations, restoration costs, interruption losses, liability claims, extortion loss and regulatory costs. There are also various optional enhancements that customers can choose from, to enhance their protection based upon their circumstances and needs.
The insurance is available to businesses of all sizes and the premium will depend on the scale of coverage required, as well as the current status of the business in relation to its data management and business continuity systems. Businesses who can demonstrate that they are following best security practices by, for example, encrypting data and having disaster recovery and business continuity plans in place, will benefit as the price of the insurance will be adjusted accordingly.
Mr. Chua added, “Malaysian businesses, particularly SMEs, really need to consider the importance of taking up insurance to protect against cyber threats. There are almost daily reports of the increased capabilities of cyber-criminals and for each story that gets covered another ten never make the news. While larger companies may have the technical and financial resources to ride out a security issue, these can be life threatening for smaller businesses.”
He continued, “We have put a lot of effort into making the policy clear, easy to understand and flexible; with a first-rate panel of experts to advise our customers and fast turnaround with excellent quotation, claims and payment systems. All of this collectively means that we are better placed to support our clients should they be unfortunate enough to suffer a cyber-security incident.
For more information on MSIG’s Cyber SafeGuard insurance please visit https://www.msig.com.my/business-insurance/products/cyber-safeguard/ or talk to an MSIG insurance broker.