Hello, friend Liga Asuransi. Welcome back to our trusted educational site for protecting your business. In today’s digital age, cyber threats are increasingly real and disturbing. Many companies across various sectors—both small, medium, and large—are becoming easy targets for hackers. Therefore, it’s crucial for all of us to understand the urgency of having cyber insurance as part of a business risk mitigation strategy.
This article will thoroughly discuss the increase in cyber attacks in Indonesia and the world, the risks that may occur, and why. Cyber insurance has become a vital need for modern companies. Don’t forget, we will show you how insurance brokers such as L&G Insurance Broker can help you choose the best protection that suits your needs.
Cyber Attack Trends in Indonesia and the World
In recent years, the trend of cyberattacks has shown a significant surge. According to a report from the National Cyber and Crypto Agency (BSSN), Indonesia experienced more than 1 billion cyberattack attempts in 2023. This figure not only indicates a high level of threat but also demonstrates that many companies still lack adequate digital security systems.
The most common attacks include:
- Ransomware: Malicious software that locks important data and demands ransom.
- Phishing: Attempts to obtain sensitive information through fake emails or websites.
- DDoS (Distributed Denial of Service): An attack that paralyzes a system with excessive traffic.
The consequences of these attacks are not only data loss, but also financial losses, tarnished reputations, and operational disruptions that lead to a loss of consumer trust.
Impact of Cyber Attacks on Operations and Finance
The damage caused by cyberattacks is not something to be underestimated. In addition to losing critical data, companies can also be affected by:
- IT system recovery costs
- Legal costs if consumer data is leaked
- Losses due to system downtime
- Fines from regulators
Imagine if a hospital lost access to patient data due to a ransomware attack. Operations could be halted, and patients’ lives could be at risk. Or if e-commerce customer data were leaked and sold on the dark web, the company’s reputation could collapse in an instant.
What Is Cyber Insurance?
Cyber insurance, or cyber insurance, is a type of protection designed to help companies minimize the risks and losses resulting from cyberattacks. This policy can cover a variety of things, including:
- System recovery costs
- Digital forensic costs for investigations
- Legal and litigation costs
- Compensation to third parties
- Cost of notification to customers
In other words, cyber insurance acts as a safety net that helps companies bounce back after a cyber incident.
Key Benefits of Having Cyber Insurance
Some of the benefits you can get include:
- Protecting against Financial LossCyber insurance will cover most of the costs arising from an attack, so that the company’s finances remain stable.
- Accelerating Operational RecoverySupport from a team of IT forensics and legal experts will speed up system recovery and reduce downtime.
- Increasing Client and Business Partner TrustHaving a cyber policy shows that your company is serious about protecting data and is committed to security.
- Complying with RegulationsIn some sectors, such as finance or healthcare, data protection is a legal requirement. Cyber insurance helps ensure regulatory compliance.
Cyber Risks Facing Companies
No matter how large or small, all companies have security vulnerabilities. Some common risks include:
- Human error(human error) which causes data to leak.
- Software is not updated(outdated software) that opens up loopholes for malware.
- Weak internal security policies.
- Public network connections are vulnerable to hacking.
As technology advances, risks become increasingly complex. Therefore, protection approaches must become more sophisticated.
Case Study: Cyber Attack on a Retail Company
A major retail company in Indonesia was once the victim of ransomware, which paralyzed the entire cashier system at hundreds of branches for over three days. As a result, the company suffered billions of rupiah in losses, lost customer loyalty, and incurred exorbitant digital security consulting fees.
Unfortunately, the company didn’t have cyber insurance, so it had to cover all costs out-of-pocket. This serves as a valuable lesson for other companies to not underestimate the importance of this protection.
Who Needs Cyber Insurance?
All companies connected to the internet actually need this insurance. Especially:
- E-commerce company
- Digital banking services
- Hospitals & healthcare services
- Technology company
- Startup
- Consultants and law firms
In essence, anyone who stores customer data digitally should consider having cyber insurance.
The Role of Insurance Brokers in Choosing Cyber Insurance
Choosing cyber insurance isn’t something to be taken lightly. There are many products on the market with varying coverage. This is where the role of cybersecurity comes in.insurance brokers become important.
L&G Insurance BrokerWe are here as your strategic partner in determining the best policy. We will help:
- Assessing cyber risks in your company
- Compare various insurance products from various companies
- Best premium negotiation
- Assistance when a claim occurs
As independent insurance brokerWe are not tied to a single insurance company. We work for you, not for the insurance provider.
Why Choose L&G Insurance Broker?
- Experienced in Technology Risk ProtectionWe have helped many technology companies and startups in managing their digital risks.
- Responsive and Professional Team of ExpertsFrom the initial consultation to the time of claim, our team is ready to assist you.
- Global Insurance NetworkWe partner with global insurance providers to provide the best coverage options at competitive premiums.
- Industry-Specific ApproachEvery industry has different risks. We’ll tailor a protection solution to suit you.
Tips for Choosing the Right Cyber Insurance
- Make sure coverage includes third party liability
- Check if there is a maximum limit on compensation
- Choose a policy that also covers legal and forensic costs.
- Consult with an experienced broker
Don’t be tempted by cheap premiums. Ensure the coverage is appropriate for the scale and type of your business.
Conclusion
Cyberattacks are now a real threat to all types of businesses. The resulting losses can be significant, both financially and operationally, and even reputationally. Therefore, cyber insurance is no longer an option, but a necessity.
However, choosing the right coverage requires in-depth analysis. Here it is L&G Insurance BrokerWe’re here to provide solutions tailored to your company’s needs and risks. We understand the importance of speed in recovery and convenience in the claims process.
Don’t wait until your company data is held hostage or leaked to the public.Protect now before it’s too late!
👉 Get a free consultation with L&G Insurance Broker via WhatsApp at 0811-8507-773 and get the best solution for your company’s cyber insurance!
