Cyber Risk Is No Longer an Option, But a Necessity
In the digital age, data is a company’s most valuable asset. Unfortunately, precisely because of this value, data is a prime target for cyberattacks.
In Indonesia, cases of hacking and data leaks have increased sharply — from the banking sector, logistics, to government agencies.
For example:
The National Data Center (PDN) was hacked, paralyzing thousands of public services.
Bank Syariah Indonesia (BSI) experienced ransomware which resulted in operational disruptions.
Local startups and e-commerce companies often fall victim to phishing, data breaches, and ransomware attacks.
The financial and reputational impact of these incidents is enormous. More worryingly, many companies lack a comprehensive cyber risk management strategy.
This is where PT. Liberty and General Insurance Broker (L&G Insurance Broker) comes in — not just as a policy broker, but as a strategic partner in cyber risk management and data protection.
Cyber Risk: A Major Challenge for Modern Business
Cyber risks are not only about data loss, but also business disruption and financial loss.
Some of the most common risks include:
- Data Breach – theft or leakage of customer, employee, or business partner data.
- Ransomware – an attack that locks a company’s systems and demands a ransom.
- Business Interruption – company operations come to a complete halt due to a system attack.
- Social Engineering Fraud – psychological manipulation to steal funds or system access.
- Reputational Damage – loss of public and customer trust.
- Regulatory Penalties – fines for violations of the Personal Data Protection Act (PDP Act).
- These attacks can affect anyone — large companies, startups, and public institutions.
Therefore, cyber risk management must be both preventive and protective.
Why Cyber Risk Management Can’t Be Done Alone
Many companies think that having an IT Security team is enough.
In fact, cyber risk is multidisciplinary — involving technological, legal, financial, and reputational aspects.
Some common weaknesses:
- The IT team only focuses on system security, not the financial impact.
- Legal departments often do not understand the implications of insurance policy wording.
- The finance department has no backup strategy in case of cyber loss.
- Without integration between these functions, the protection strategy becomes fragile.
Therefore, companies need professional insurance brokers such as L&G Insurance Broker to bridge all these aspects into one integrated protection system.
The Role of Insurance Brokers in Cyber Risk Management
Insurance brokers have a role that goes far beyond simply “policy sellers.”
In the context of cyber risk, the broker’s function is as a strategic partner in digital risk management.
Here are four key roles L&G plays in helping companies address cyber threats:
- Risk Assessment dan Mapping
L&G helps clients conduct comprehensive assessments of digital risks, such as:
- IT infrastructure and cloud usage,
- Data access policy,
- Backup and recovery system,
- Vendor or third party involvement,
- and exposure to customer data.
The results are used to determine the appropriate type of insurance coverage and coverage limits.
- Cyber Insurance Program Design
Every company has a unique risk profile.
L&G ensures that the policies prepared are truly tailored to business needs, taking into account:
- Coverage: data breach, ransomware, fraud, lost revenue, regulatory fines, etc.
- Proportional limits and deductibles.
- Additional clauses (endorsements) according to industry needs.
- Realistic incident response mechanisms.
With this approach, companies do not purchase policies that are excessive or conversely — too narrow.
- 3. Regulatory Compliance Assistance
Law No. 27 of 2022 concerning Personal Data Protection (PDP) requires every data controller to:
- Report data leak incidents within a maximum of 3×24 hours,
- Have a security system and data protection documentation,
- Responsible for the loss of data subjects.
L&G helps clients prepare a compliance framework to avoid fines and legal claims.
- Claims and Recovery Assistance
In the event of a cyber attack, the claims process is usually complicated:
- Requires forensic audit,
- Involving regulators and legal parties,
- It takes time and precise documentation.
L&G acts as a claims advocate, ensuring the insurer pays as agreed.
Brokers also coordinate with IT forensics vendors, legal consultants, and crisis PR firms to help restore a company’s reputation.
Case Study: Effective Broker-Company Collaboration
💡Case 1 – Ransomware Attack on a Logistics Company
A logistics company in Jakarta experienced a ransomware attack that crippled its operational servers.
With broker assistance:
- Incidents are reported to the insurer within 24 hours,
- Digital forensics was done in 3 days,
- Claims worth Rp 8.7 billion were approved and paid within 60 days.
Without a broker, claims reports can be delayed due to lack of documentation and procedures.
💡Case 2 – Patient Data Leak at Hospital
A private hospital experienced a data leak of 15,000 patients.
Brokers help prepare public communications, reports to regulators, and claims filings.
The Rp 5.2 billion claim was approved — including crisis PR costs and compensation to patients.
The Benefits of Having an Insurance Broker in Cyber Risk Management
| Aspect | Without Broker | With L&G Broker |
| Police Understanding | Many misinterpretations | Translated into business language |
| Premium Negotiation | Limited to one insurer | L&G access to local & international markets |
| Regulatory Compliance | Not understanding the PDP Law | Assisted in preparing SOPs & reporting |
| Claim Process | Slow & risky to be rejected | L&G accompanies you from start to finish |
| Prevention Strategy | There is no roadmap | L&G helps prepare cyber risk roadmap |
In other words, brokers serve as co-pilots of the company’s digital risks.
Challenges Companies Often Face in Cyber Risk Management
- Lack of top management awareness of the financial impact of cyber attacks.
- There is no internal incident reporting procedure.
- Not updating the policy according to technological developments.
- Does not have a clear claim SOP.
- Overconfidence in one’s own IT system.
L&G Insurance Broker addresses this challenge with an educational approach — helping management understand risks and prepare anticipatory measures.
Ideal Collaboration Strategy: IT + Legal + Broker
Cyber risk management is most effective when built through three-party collaboration:
| Party | Role |
| IT Department | Maintain technical security & detect incidents. |
| Department Legal/Compliance | Ensure compliance with the PDP Act and incident reporting. |
Insurance Broker (L&G) Ensuring financial readiness & smooth claims process.
This synergy ensures that companies are technically, legally, and financially prepared to face cyber risks.
Why Choose PT. Liberty and General Insurance Broker (L&G)
As a national broker with more than two decades of experience, L&G Insurance Broker has handled various complex risks in the sectors:
- Mining,
- Energy,
- Construction,
- Logistics,
- Technology and data center.
In the field of Cyber Insurance, L&G’s strengths include:
✅Risk mapping based on industry and business size.
✅Tailor-made policy designs, not generic templates.
✅Direct relationships with global insurers experienced in cyber risk.
✅24/7 claims support with a team of experts.
✅Cyber risk awareness education and workshops for clients.
With a comprehensive approach, L&G is not just selling policies, but building the company’s digital resilience (cyber resilience).
Conclusion: Brokers Are Strategic Partners, Not Just Intermediaries
Cyber risks are a real threat to the sustainability of modern businesses.
Relying on an IT team alone is not enough — a well-thought-out financial and legal strategy is required.
Insurance brokers such as PT. Liberty and General Insurance Broker (L&G Insurance Broker) act as strategic partners that:
- Help assess and manage risks,
- Designing relevant policies,
- Ensuring the claims process runs effectively,
- And supports compliance with data regulations.
With L&G’s support, companies can run their digital businesses confidently, securely, and ready for the future.
ProtectProtect your business from digital threats with comprehensive solutions from PT. Liberty and General Insurance Broker (L&G Insurance Broker).
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
