Kenyan firms can now worry less about losses emanating from Cyber security attacks following the launch of a cyber liability insurance policy yesterday.
The policy, unveiled by AON Kenya is set to save companies atleast sh400 million on average from a single breach.
According to a recent research by the firm, atleast 83 per cent of companies have no written plans on how to be cyber secure.
This is in addition to 60 per cent of Small and Medium enterprises that collapse within the first six months after experiencing a Cyber attack majorly due to small budgets.
The policy comes amidst recent reports by Deloitte on technology, media and telecommunications that Kenya accrues huge losses amounting to Sh18 billion annually from Cyber attacks majorly affecting financial and government institutions.
“Data is an organization’s most valuable asset but it’s also most vulnerable asset. However, as businesses and companies grow, so do their exposure to cyber risk. This simply means that as the value of a business grows, it raises its profile among hackers,” said AON Kenya Chief Executive Sammy Muthui
While addressing stakeholders during the Policy launch, Cyber specialist Bright Gameli noted that firms need to be cautious of simple things like opening a malicious document sent on email which can expose them to cyber criminals.
He outlined other possible activities that expose firms and individuals to cyber attacks that include; staying on unsecured wireless network, opening a mobile application and giving it access to your mobile data, plugging in a phone charger or flash disk from unknown sources among others.
Covers in the cyber liability insurance policy include that for property damage arising out of a network security breach, products liability to address Internet of Things exposures, business interruption and extra expense coverage arising out of systems failure among others.
According to an ICT security survey conducted by Kenya National Bureau of Statistics &Communications Authority of Kenya, up to 48.4 per cent of all government agencies reported data loss due to a virus attack.
Also Contributing to the losses is 5.1 per cent of businesses and 7.1 per cent of State institutions that are hacked annually.
From the survey, only 15 percent of attacked firms had systems to detect intruders, despite most of them having their antivirus updated.
In August this year, the Central Bank of Kenya used published a guidance note directing institutions licensed under the Banking Act to develop and implement a comprehensive set of program requirements to mitigate Cybersecurity risk.