"Brokers need to protect themselves first"

"Brokers need to protect themselves first" | Insurance Business

"Brokers need to protect themselves first"

Following the release of the ACCC’s 11-year Targeting Scams Report, and the cyberattack on the federal government soon after, a cyber expert has warned brokers to protect themselves if they want to retain clients.

Sean Duca (pictured), vice president, regional chief security officer at Palo Alto Networks, Asia-Pacific and Japan, says in order for brokers to best serve their clients they need to ensure they have their own house in order.

“If trust is eroded in a broker, people are less likely to go back to them. So, they need to think about how they can bolster their own defences and ensure they can’t be subject to an attack like this in the first place,” Duca said.

“At the end of the day, I think if someone suffered from a cyberattack, and it caused some sort of reputational damage to them, clients will take their business elsewhere. We [as clients] have a choice and that’s the reality of it.”

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Duca concedes there is still a “lot of work that should be done” around educating clients on cyber insurance. Brokers must also have an intimate understanding of the value a particular policy delivers for the business before finalising a sale.

“If there’s an insurance policy, brokers should question what their clients actually get out of it,” he said. “Is this going to fundamentally solve the problem or is this more of a smoke screen that’s not focusing on the backend?

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“What are you actually selling? What is the person actually going to get out of it? So, if there’s a cyber policy out there, what’s actually included in it? In the event of a large-scale attack of the primary business, is that actually included in the policy? If someone falls victim to a BEC attack, is that included also?

“I’m not having a go at brokers here - but some people have had insurance claims that weren’t actually paid out by the insurance company. It’s important to have your clients’ interest at heart.”