Chartis, a global insurer, last week launched its first comprehensive cyber insurance solution. Called CyberEdge, the product is designed to address the consequences of losing corporate information and personal data from cyber attacks, in addition to covering potential third party liabilities that may arise from a data breach or network intrusion.
According to Chartis, this new insurance product is the first comprehensive cyber coverage solution in Asia Pacific. It provides coverage for cyber liabilities that most commercial insurance policies do not cover.
Chartis vice president for Asia Pacific, Ian Pollard said: "Singapore businesses are significantly unprepared for cyber risks, and chairmen and CEOs need to get serious about managing their cyber risks."
CyberEdge will be initially available for commercial customers with operations in Australia, New Zealand, Singapore and Hong Kong. It is suitable for small and multinational enterprises, with an annual turnover of at least US$100,000.
Chartis Singapore country manager Mr Mike Raines said: "Recently, the financial sector was impacted by a cyber threat in Singapore. Cyber attacks, often in the form of data breaches and network intrusions, can impact operations, frequently result in lost productivity, legal expenses, third party liabilities, exposed intellectual property, and damage to a firm's reputation."
"Government and commercial organisations in the healthcare, retail, education, hospitality, telecommunications, and financial services sectors are highly susceptible to cyber attacks. CyberEdge will help organisations strengthen their defences against cyber threats, and the insurance can provide financial protection against cyber risks," Mr Raines said.
A key feature of CyberEdge is the Data Crisis Response Team which provides the insured with 24/7 direct assistance from specialist legal experts and public relations advisors in the event of a data crisis event.
Gigi Cheah, partner and Asia lead for technology and data privacy at international legal practice Norton Rose, said: "There is an increasing awareness of the need to protect data, whether of individuals or companies, with corresponding strengthening of privacy and security legislation worldwide."
"The penalties imposed by these laws for failure to adequately safeguard data are also increasing with proposed changes to the EU data protection framework including a maximum penalty of two percent of global annual turnover of an offending corporation," she added.
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