Today’s consumers are embracing technology much faster than ever before. And because of this, security professionals report dramatically increasing risk profiles due to the surge in entry points resulting from unstoppable trends in mobile devices, cloud computing, and social media, among others.
“You wouldn’t drive your car without auto insurance. I would not turn on my laptop without cyber liability insurance, it’s that important,” said Jason Kelly, vice president for financial lines of AIG Insurance Hong Kong Ltd., on the sidelines of the Asia CEO Forum held at the Raffles Fairmont Hotel in Makati City.
“Here in Asia, we just haven’t gotten there yet. In the US, this is a very standard product. It’s part of every risk management conversation,”
In 2011, PwC’s sixth Global Economic Crime Survey showed that most people and businesses rely on the Internet and other technologies and as a result, they potentially open themselves up to attacks from criminals anywhere in the world.
The same survey showed that cybercrime now ranks as one of the top four economic crimes.
According to Kelly, the human race currently generates 28 billion gigabytes of data everyday and that 90 percent of all data in existence was created in the past two years.
Kelly also noted that with the arrival of the internet in the Philippines in 1994, more than 30 percent of people became connected while smartphone penetration is nearly 50 percent, and with this, people are now more exposed to cybercriminals.
Furthermore, in a recent AIG survey addressing companies’ top priority, AIG found that C-suite executives, risk managers, and Information technology (IT) decision makers ranked risks for their companies as follows: cyber risk, 86 percent; loss of income, 82 percent; property damage, 80 percent; utility interruption, 76 percent; and securities investment risk, 76 percent.
In line with this, AIG has launched an innovative insurance product called CyberEdg that seeks to address these issues.
Kelly said CyberEdge is a comprehensive risk management solution for cyber insurance that provides protection to help businesses safeguard against sensitive data breaches such as personal and corporate data computer hacking, dumpster diving, computer viruses, employee sabotage or error, pilferage of information, security failures, business interruption and identity theft.
The AIG executive said that most high-profile stories in the media today address the type of data that impacts people on a personal level — credit card numbers, medical records, birth dates, ID and passport numbers and other personal information.
Virtually all companies handle personal and corporate data on a daily basis, whether it be identity card numbers and corresponding profiles of employees, credit card information, sensitive demographic information about customers’ information on budgets, customer lists, share prospectus or marketing plans.
The same companies face very real liabilities if such data falls into the wrong hands or enters public domain, the AIG executive said.
”We don’t just sell but also we want to educate and create the awareness,” Kelly said. ”We are going to raise the awareness and we see that this is a growing market,” he added.