Helping businesses safely embrace digital
The rise of cyber-risks is however bringing new challenges and opportunities to cyber-security and cyber-insurance professionals. The global cyber insurance market is projected to be valued at more than US$28,600 million by 2026, according to Allied Market Research’s recent forecast report. Perhaps you are already feeling these changes and noticed that your portfolio of clients has changed, or expanded. On the flip side, this means a whole new market to approach, and it comes with questioning the way we do it and reconsider our methods.
Cyber-security is no longer reserved to tech savvy or digital only businesses, it has become a non-negotiable to all companies, even if they might not be aware of it. SMEs are the new target market, and most of them do not have the internal resources to stay informed about the risks they are exposed to. To start with, they should be able to know where they are at, run diagnosis and identify the gaps in their security. Then, they need to have a plan tailored to different scenarios. Digital technologies are definitely saving costs and time when used correctly in all areas of their business (accounting, management, communications…), the whole business is online, but the threat is real and growing as we have witnessed a rise in cyber attacks. So, how do we approach clients?
They key here is reassurance, and this would come by offering them an end-to-end approach, that releases them from all worries. This opened an opportunity for collaboration between cyber security and insurance experts. Your role is crucial in raising awareness about the risks, and guide clients through processes on how to be and feel safe. However, in these changing times, residual risk remains and this is when insurance can fill the gap.
Welcome to a new business era where uncertainty is the new norm and all is happening online. These past few months have redistributed the cards and showed us the importance of reactivity and adaptability. These qualities surely apply to businesses of all sizes, but put small to mid-size companies particularly at risk. Because they are more flexible than their biggest sisters, they are facing one major challenge: preparation. In a context that not even the best experts could have predicted, we have witnessed adoption of new digital tools, technologies or methods in an impressive rapid timeframe. Whilst this is admirable, the issue is that assuring security might not have been part of the plan.
Many businesses that the cyber-security industry had not been used to working with have embraced digital technologies and this trend is most likely to last. Unfortunately, because of misconception not all are investing in insurances. The reality is that this should be on their top priorities list, and this is our role to make them realise that, and to guide and reassure them through this digital journey.
We have seen a rise in cyber risks, such as data breach, hacking or phishing. Not only have the number of cyber attacks risen, a big wave of digital newbies have joined the online business world. We have seen everyone jump onto Zoom, the online teleconference technology. But how many of them have thought about their data protection?
Recent cyber attacks scandals in the news such as the Lion case should not overshadow the fact that small to mid-size businesses are targeted daily by those threats. Lacking time to prepare, most of them probably jumped on board without giving too much consideration to their safety. Privacy, data or their own company, but also the ones of their clients, which would not only be an issue for the latter, but also for their own reputation. Without sounding dramatic, it is crucial to remind our clients that cyber risks are a constantly evolving threat.
If you share this point of view, we would love to get in touch and discuss about potential partnership or referral programs.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Meena Wahi.