Lagging market must catch up on cyber insurance, says regulator

With only one cyber insurance policy available in the market, this ASEAN nation must inject more life into the sector

Lagging market must catch up on cyber insurance, says regulator

Insurance News

By Gabriel Olano

The Philippines’ Insurance Commission (IC) has urged the various members and stakeholders of the insurance industry to develop products and measures to protect the market from cyber risks, in the wake of the recent “WannaCry” global ransomware attack.

IC chief Dennis Funa told the industry this message after the WannaCry attack caused interruptions at several Philippine businesses, leading to loss in revenue and added expenses for information technology system repairs and upgrades.

Funa added that the Philippines is lagging behind many other countries in terms of development of cyber insurance products, which leads to insufficient protection for the growing economy.

“At present, it is only AIG Philippines Insurance that has an approved cyber insurance policy which is currently available in the market, while one leading non-life insurance company had already submitted a proposed cyber insurance and data asset and network security products for approval of the IC,” Funa was quoted by The Star.

“By optional extension, cyber extortion liability may be covered which provides for payment in case of extortion loss as a result of security threat, as well as payment for the cost of investigation to determine the source thereof. This coverage can directly address cyberattacks such as ransomware.”

To accelerate the development of the cyber insurance sector, Funa asked for the help of government and private institutions, as well as the media, to create public awareness about the importance of insurance in protecting organizations and individuals against cyberattacks.

Related stories:
Ill-prepared firms resorting to kidnap insurance against ransomware attacks
Indian insurers on the hook following ransomware attack
Indonesia warns of more cyber attack damage following global scare

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