Cyber ​​Insurance: A Critical Protection in the Digital Age That’s Often Overlooked in Indonesia

The Digital World, Limitless Risk, and the Role of Insurance Brokers

Modern life today is almost inseparable from digital technology. All business activities—from financial transactions and internal communications to customer data storage—rely on digital systems and internet networks.

However, behind this convenience, there is a big risk that is often ignored by many companies in Indonesia: cyber attacks.

Data from the National Cyber ​​and Crypto Agency (BSSN) recorded that throughout 2023, there were more than 400 million anomalous cyberattack traffic incidents in Indonesia, a sharp increase compared to the previous year. Data breaches, ransomware, phishing, and distributed denial-of-service (DDoS) attacks are becoming increasingly common, affecting large corporations, government agencies, and even MSMEs.

Unfortunately, awareness of the importance of financial protection through cyber insurance remains very low. Many business owners assume this risk only affects large corporations or financial institutions. However, the facts show that small businesses are actually more vulnerable to attacks due to their less robust security systems.

This is where the role of an insurance broker becomes very important.

Insurance brokers are independent professional advisors who help companies understand, manage, and transfer business risks to insurance companies. In the context of cyber risk, brokers not only sell policies but also help:

1. Identify and measure potential cyber risks,
2. Designing collateral that suits business needs,
3. Develop protection and mitigation strategies,
4. Accompanying the claims process if an incident occurs.

One of the professional insurance brokers in Indonesia that actively educates the market about the importance of cyber insurance is PT. Liberty and General Insurance Broker (L&G Insurance Broker).

As an experienced broker specializing in corporate, engineering, heavy equipment, cargo, and now cyber risk insurance, L&G Insurance Broker has helped many companies in Indonesia understand and mitigate modern risks, including the ever-increasing cyber threats.

Contact L&G Insurance Broker now at Phone number 08118507773for a free consultation before the risks haunt your business.

The Harsh Reality: Indonesia Becomes a Target of Cyber ​​Attacks

Some real-life examples show how serious this threat is:

1. The National Data Center (PDN) data leak in 2024 caused disruption to public services and data leakage of millions of residents.
2. Tokopedia data leak (2020) involving more than 90 million user accounts.
3. A ransomware attack on Bank Syariah Indonesia (BSI) in 2023, which paralyzed banking services for several days.
4. Attacks on Harapan Kita Hospital and Dharmais Hospital (2021) which disrupted the system service health amidst the pandemic.

These cases demonstrate that no institution, whether private or government, is completely secure. The digital world has blurred geographical boundaries — hackers can attack from anywhere, at any time.

The Financial and Reputational Impact of Cyber ​​Attacks

For a business, a cyberattack isn’t just about data loss. The impact can be far more significant and complex:

1. Operational downtime – A crippled system means business stops running.
2. Loss of customer data – Including personal information, bank accounts, and transaction records.
3. Direct financial losses – Including recovery costs, ransomware ransoms, and digital forensic investigations.
4. Reputation damage – Once a customer loses trust, it is difficult to restore it.
5. Legal risks – Violations of the Personal Data Protection Law (Law No. 27/2022) can result in large fines and lawsuits.

For example, a company experiencing a customer data breach could be sued for negligence in protecting personal information. These costs can reach hundreds of millions to billions of rupiah—and without insurance coverage, the business must bear the full cost.

What Is Cyber ​​Insurance and Why Is It Important?

Cyber ​​Insurance is an insurance product that provides financial protection against losses arising from cyber attacks, data breaches, or IT system failures.

This policy not only covers direct losses, but also helps companies with recovery, digital forensics, and legal costs after an incident occurs.

Main benefits:

1. Suffering direct financial losses due to cyber attacks.
2. Cover legal costs and third party compensation.
3. Provides access to a team of IT forensic experts for data recovery.
4. Covering the costs of reputation restoration through PR (public relations) services.
5. Protect employees and customers from potential misuse of personal data.

In other words, cyber insurance helps companies survive financially and operationally when attacked by hackers.

Why Insurance Brokers Are So Necessary

Purchasing a cyber insurance policy isn’t something to be taken lightly. Each company has a different digital risk profile, depending on:

1. Type of industry,
2. Volume and type of data managed,
3. IT infrastructure,
4. Number of employees and access systems,
5. and the level of internal security policy readiness.

For this reason, companies need professional insurance brokers to ensure that the policies purchased actually cover the actual risks faced.

The main functions of the broker:

1. Analyze cyber risks and evaluate data security readiness.
2. Plan appropriate guarantees, including determination of limits and exclusions.
3. Compare insurance products from various companies to get the most competitive premiums.
4. Explain the policy wording in detail, to avoid misunderstandings in the future.
5. Accompanying the claims process, ensuring that the insured’s rights are paid optimally.

L&G Insurance Broker has extensive experience in managing various types of business risks and is now actively developing its Cyber ​​Risk & Technology Insurance line to help companies face increasingly complex digital threats.

Types of Insurance in Police Cyber ​​Insurance

Cyber ​​insurance policies typically cover two broad groups of coverage:

1. First Party Coverage (Protection for the Insured)

1. Data Restoration Costs: the cost of recovering or replacing lost data.
2. Business Interruption: losses due to the cessation of business activities.
3. Cyber ​​Extortion: costs related to ransomware or digital threats.
4. Forensic Investigation: costs of investigating the cause of the attack.
5. Reputational Damage / Crisis Management: public relations and PR costs for image restoration.

1. Third Party Coverage (Third Party Liability)

1. Data Breach Liability: legal liability resulting from customer data breaches.
2. Privacy Liability: claims from third parties due to privacy violations.
3. Regulatory Fines and Penalties: fines resulting from violations of personal data regulations.
4. Media Liability: lawsuits resulting from digital content that violates copyright or harms another party.

Information Needed to Purchase Cyber ​​Insurance

Before issuing a policy, the insurance company will conduct underwriting and require fairly detailed data. Typically, a broker will assist with completing a Cyber ​​Risk Questionnaire, which includes:

1. Company profile (type of business, number of employees, location).
2. IT systems and network infrastructure used.
3. Amount and type of data managed (customer, financial, business secrets).
4. Security measures already implemented (firewall, antivirus, data back-up).
5. History of previous cyber incidents.
6. Use of cloud, ERP systems, or remote access.

The better the data provided, the more accurate the risk assessment and premium offered.

Cyber ​​Insurance Claim Process

When a cyberattack occurs, quick and effective action is crucial. Typically, the claims process involves the following steps:

1. Report immediately to the broker and insurance within 24–48 hours.
2. A digital forensics team will be appointed to investigate the cause and impact.
3. Documentation of losses must be complete: IT reports, evidence of attacks, loss values.
4. Legal liability analysis (if third party data is involved).
5. Claim payments are made according to the verification results and policy guarantee limits.

Common challenges in claims:

1. Delay in reporting incidents.
2. Lack of adequate evidence of attack.
3. Mismatch between attack type and policy wording.
4. Lack of support from the company’s internal IT.

This is where L&G Insurance Broker plays a vital role in overseeing the claims process so that it runs quickly, accurately, and produces optimal results.

Why Cyber ​​Insurance Should Be Considered Now

1. The trend of digitalization is growing rapidly — but so is the threat of cybercrime.
2. Companies that delay protection will only become more vulnerable.
3. Some reasons why now is a great time to have cyber insurance:
4. Cybercrime is becoming increasingly sophisticated and organized.
5. Personal data protection regulations are becoming stricter.
6. The cost of recovering from cyber incidents continues to rise.
7. Business reputation is difficult to restore without financial support.

Cyber ​​insurance not only protects companies from financial losses, but also helps restore operations and public trust quickly.

Conclusion: It’s Time to Act Before It’s Too Late

Cyber ​​risk is a real threat in the modern business world. No system is completely immune to cyberattacks.

However, you can managethe riskswith strategic steps: building a strong digital security system and having the right cyber insurance protection.

Together with PT. Liberty and General Insurance Broker (L&G Insurance Broker), companies can obtain:

1. Comprehensive cyber risk analysis,
2. Design a policy that suits your needs,
3. Negotiate the best premiums, and
4. Professional assistance during the claims process.

Because in the digital world, the question is no longer “will we be attacked?”, but “when will the attack happen?”.

And when that happens, only companies that are prepared with cyber insurance and supported by experienced brokers will be able to survive and recover faster.

Want to know if your business has enough protection against cyber attacks?

Consult for free with PT. Liberty and General Insurance Broker (L&G Insurance Broker) — a specialist in corporate insurance, technology, and cyber risk in Indonesia.

DON’T WASTE YOUR TIME AND SECURE YOUR FINANCES AND BUSINESS WITH THE RIGHT INSURANCE.

HOTLINE L&G 24 JAM: 0811-8507-773 (PHONE – WHATSAPP – SMS)

Website: lngrisk.co.id

Email: halo@lngrisk.co.id