Cyber Threats Are Increasingly Real, Brokers Are Increasingly Vital
In today’s digital age, cyber threats have become the most serious business risk globally. According to the Allianz Risk Barometer 2024 report, cyber incidents rank as the global risk most feared by businesses, surpassing supply chain disruptions and natural disasters.
In Indonesia, data breaches and ransomware attacks have increased dramatically. The attacks on the National Data Center (PDN) and Bank Syariah Indonesia (BSI) serve as a stark reminder that anyone—governments, corporations, and even MSMEs—can become victims in a matter of seconds.
However, amidst these growing threats, many companies still don’t understand the importance of financial protection through cyber insurance. Most still assume that IT security systems are sufficient. In fact, digital security and financial protection are complementary.
This is where the role of a professional insurance broker like PT. Liberty and General Insurance Broker (L&G Insurance Broker) become highly strategic. As an independent risk advisor, L&G goes beyond simply selling policies; it helps companies understand cyber risks, assess financial exposure, and design the most appropriate insurance coverage.
What is an Insurance Broker and Why is it Necessary in Cyber Insurance?
In simple terms, an insurance broker is a professional whose job is to represent the interests of the insured (customer) in dealing with insurance companies.
Unlike agents, brokers are not tied to a single insurance company — so they can provide objective, competitive, and tailored solutions to clients’ needs.
In the context of cyber insurance, the role of the broker is even more important because:
- Cyber risks are complex and constantly changing — requiring in-depth technical and legal understanding.
- Cyber insurance products have wording (terms & conditions) that vary between insurance companies.
- The underwriting process requires a thorough analysis of the company’s IT security systems.
- The claims process is often complicated and requires expert assistance.
Brokers like L&G Insurance Broker act as “navigators” who ensure clients do not make mistakes in selecting, understanding, and utilizing cyber insurance policies.
Main Duties and Functions of Brokers in Cyber Insurance
The following are the main functions of brokers in helping companies deal with cyber risks:
- Cyber Risk Assessment
Brokers help companies identify potential vulnerabilities, such as:
- Reliance on digital or cloud systems,
- Access customer or third party data,
- Use of IoT devices or mobile apps,
- Potential financial impact if a disruption occurs.
Through this analysis, L&G Insurance Brokers can determine the most relevant type of coverage and adequate coverage limits.
- Designing the Right Insurance Program
- Every business has different risk characteristics. For example:
- Financial companies are more vulnerable to phishing and digital fraud,
- Hospitals are more vulnerable to patient data leaks,
- Factories with automated systems are at risk of operational disruption due to malware attacks.
The broker is tasked with tailoring the policy coverage to properly protect the client’s specific risks.
L&G Insurance Broker ensures there are no gaps in protection, especially in exclusion clauses that are often overlooked.
- Negotiate Premiums and Policy Conditions
Because L&G works independently and professionally, the broker team has access to a wide range of insurance companies — both local and international.
The goal: to get the best premium rate with maximum benefits.
Additionally, brokers help negotiate important aspects such as:
- Limit of coverage,
- Deductible (own risk),
- Additional coverage (endorsement) such as reputational loss, social engineering fraud, or regulatory fines.
- Assistance in the Claims Process
The cyber insurance claims process can be a major challenge because it involves many parties — IT forensics, regulators, and the media.
Brokers like L&G Insurance Broker are responsible for:
- Help clients report incidents quickly and correctly,
- Preparing digital forensic documents and evidence,
- Negotiate with insurers to get claims paid fairly and quickly,
- Provide crisis communication assistance, especially if the data breach has public impact.
In many cases, a broker is the difference between an approved claim and a denied claim.
Why Can’t Companies Just Rely on IT Security?
Many companies still think: “We already have firewalls and antivirus, so we don’t need insurance.”
However, the facts on the ground say otherwise.
Some important points:
- 95% of data breaches are due to human error, not system failure.
- Modern ransomware can penetrate systems using social engineering techniques.
- Downtime due to attacks can cause losses of billions of rupiah per day.
- A damaged reputation cannot be restored simply by patching the system.
- Cyber insurance does not replace IT security, but provides financial protection if all defense systems fail.
With the guidance of a broker like L&G, companies can get the best combination of prevention and protection.
Brokers’ Additional Role in Regulatory Education and Compliance
In addition to technical functions, brokers also play a role in building a culture of digital risk awareness (cyber awareness) in the client environment.
Some of the activities frequently carried out by L&G Insurance Broker include:
- Cyber risk workshops and training for management teams,
- Compliance assistance with the Personal Data Protection Act (PDP Act),
- Evaluation of information security policies,
- Socialization of incident response procedures (incident response plan).
With this approach, clients are not only financially protected, but also become more organizationally prepared.
Case Study: When Brokers Become the Savior
💡E-Commerce Company Case
A local e-commerce was hit by an SQL injection attack that resulted in the leak of 1 million customer data.
Initially, they did not know where to report and were worried that the claim would not be accepted.
With the assistance of a broker, the entire claims process — from reporting to forensics to payment — was completed within 45 days, with a total compensation of Rp 6.5 billion.
💡Manufacturing Company Case
A manufacturing company in Bekasi was attacked by ransomware which halted production for 4 days.
The broker helped activate the business interruption clause, and the company received compensation for lost revenue of Rp 12 billion.
Without the presence of a broker, it is likely that claims will be delayed or even rejected due to lack of technical documentation.
Common Challenges in Cyber Insurance and Their Solutions
Some common mistakes that often occur without the guidance of a broker:
| Challenge | Impact | Solution by Broker |
| Inaccurate completion of the underwriting questionnaire | The policy can be cancelled | L&G assists with system audits prior to submission |
| Don’t understand the police exemption | Claim rejected | Broker explains wording & scenario details |
| Late incident report | Invalid claim | Brokers prepare SOP for emergency reporting |
| There is no digital forensic evidence | Hard to prove | Brokers point to trusted IT forensics vendors |
With extensive experience, L&G Insurance Broker has a network with insurance companies, security consultants, and law firms to ensure the claims process runs effectively.
Why Choose PT. Liberty and General Insurance Broker (L&G)
L&G Insurance Broker is an experienced national broker that has handled various industry sectors:
mining, logistics, energy, health, construction, and information technology.
Advantages of L&G:
✅Expert in risk assessment and custom-made policy design
✅Extensive network with global insurers
✅Fast and transparent claims assistance
✅Educational approach — not just selling policies
✅Trusted reputation among major Indonesian industries
In the context of cyber insurance, L&G is a pioneer in education and a provider of digital protection solutions in Indonesia, helping many companies understand and manage cyber risks with a comprehensive approach.
Ideal Collaboration: IT + Insurance Broker
A modern approach to cyber risk must be collaborative:
- IT team → responsible for system security and attack prevention.
- Insurance Broker (L&G) → analyzes risks, designs financial protection, and ensures smooth claims processing.
- Insurance Company → provides compensation funds and recovery support.
- With this synergy, companies have comprehensive protection: from prevention, mitigation, to post-incident recovery.
Conclusion: Brokers are Strategic Partners, Not Just Intermediaries
In the face of ever-evolving cyber risks, having a professional insurance broker is not an option — it’s a necessity.
Brokers like PT. Liberty and General Insurance Broker (L&G) provide real added value:
- Relevant and risk-appropriate coverage,
- Full understanding of policy wording,
- Fair and transparent negotiations,
- As well as full support when a claim occurs.
With L&G’s guidance, companies can run their businesses with peace of mind, security, and readiness to face the challenges of the digital age.
🔐Wondering if your company needs cyber insurance protection?
Consult for free with PT. Liberty and General Insurance Broker (L&G Insurance Broker) — a trusted partner in cyber risk management and insurance in Indonesia.
HOTLINE L&G 24 JAM: 0811-8507-773 (PHONE – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
