A specialist insurance liability underwriter is urging Kiwi technology businesses to adopt risk management practices to keep pace with the new risks that accompany the sector’s fast growth and to remain at the forefront of the world stage.
Insurance general manager Craig Kirk said NZ companies should consider tech liability insurance policies to protect themselves from substantial financial and reputational losses, as he predicted that the technology sector, the nation’s third largest export, which amounts to nearly $7 billion, would continue to boom and grow in the years to come with the support of the government, industry advocates, and educators.
“In an increasingly globalised world, an industry which often relies on multi-regional interconnectivity faces a host of potential problems that can endanger businesses both large and small,” said Kirk.
“The risk of cyber security threats is probably the key issue facing the industry and each wave of cyber risk is becoming more sophisticated and potent than its predecessor. How technology companies tackle and manage this issue will in some cases determine whether or not they have a viable and sustainable future – the risk of getting it wrong could be catastrophic.”
Want the latest insurance industry news first? Sign up for our completely free newsletter service now.
Kirk said there is a need for Kiwi tech businesses to adopt sound risk management strategies to counter new and evolving forms of risks.
“Dovetailing into these risk management strategies should be insurance coverage that is also constantly evolving to address new and varied exposures that technology companies face,” he explained. “Even with the most robust risk management procedures, litigation and disputes can still arise.
“Despite companies and organisations’ best risk mitigation efforts, an incident triggering a technology liability can still occur. It is here that tailored, up to date technology insurance policies aim to fill in the gaps of traditional and often out-of-date coverage and protect businesses from incurring substantial financial and reputational losses.
“Through proactive thinking, planning, and innovation, we want to help ensure that New Zealand technology companies continue to grow and prosper so that they can remain at the forefront of the world stage.”
Kiwi-founded data tech company expands to Australia
Insurtech at centre of UK’s trade delegation visit