Cyber risk

As more business globally shifts online, an understanding of the risks that come with cyber-commerce operations is crucial.

Axco is witnessing increasing interest in cyber-related themes. This doesn’t surprise us, as McKinsey calculated in 2021 that growth of digital service/product offerings from enterprises has undergone the equivalent of seven years’ development in the three years since Covid began. The same study also notes that businesses are now three times more likely to say 80% of their customer interactions are digital than was the case prior to the pandemic. Read on to learn more about this growing area of insurance.

Cyber risk

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Broadly , ‘cyber’ in insurance terms covers two distinct areas – both of which relate to defending your organisation against a breach of digital systems, databases, financial platforms and other technology, but also providing a certain level of cover if an attack is successful.

Most cyber security experts will say that an assault on every organisation’s digital systems is inevitable; how each firm mitigates against them and deals with the aftermath is key.

The first area of cyber insurance is data security; the practice of protecting digital information from bad actors. It covers everything from hardware and storage to admin, access and general security.

The second area is business continuity. Insurance is designed to ensure an organisation is covered against loss or damage experienced following an attack or attempted attack.

There’s no doubt cyber is one of the fastest-growing areas of insurance – but it’s accompanied by many challenges for organisations seeking to understand more about this critical type of cover.

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