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Cyber insurance

Cyber insurance – A first priority for SMEs

Late last year, Business Report shared that according to the global Cyber Exposure Index, South Africa currently has the sixth highest average exposure to cybercrime, with businesses in the industrial and financial sectors being the most commonly targeted by cybercrime attacks.

Another similar report revealed that around 61 percent of small businesses experienced a cyber-attack in 2017.

It is reported that cyber-criminals target SMEs that hold valuable business data, such as personal customer or financial information. These small businesses often do not implement the stringent online security measures that large corporates have in place.

Santho Mohapeloa, Digital Distribution Specialist at SHA Specialist Underwriters is referenced in the article. He stresses the importance for SMEs to have adequate cover in place to help their business recover swiftly from cyber-attacks.

Editor’s note: Although cyber insurance can be seen as business opportunity for financial advisors, FSPs as SMEs should also put actions and systems in place to reduce their risk of falling victim to a cyber-attack.

Click here to read the Business Report article.

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