The incredible pace of growth in the global technology space has produced a society which has become completely dependent on technology. This has led to the greatest connectivity between people and organisations in human history. With such advanced, rapid and dynamic connectivity, people and businesses are faced with new risks which traditional insurance is ill-equipped to cope with. These risks include an array of first and third-party exposures, some of which include the costs incurred to restore computer networks following an incident, business income lost whilst systems are down, legal defence costs arising out of breaches on networks, hacking of information and money, liability arising out of online publishing and extortion; to name but a few.
Camargue, in conjunction with its partners at Lloyd’s, is excited to introduce a revolutionary risk transfer mechanism designed to provide a single solution to cyber risks faced by organisations in an ever-evolving environment. Camargue Cyber Attack Plus (“CCAP”) is a unique product born out of our extensive knowledge as one of the longest-established markets writing cyber, property, energy and terrorism classes. Not only does the offering afford seamless coverage in respect of “traditional” cyber insurance, the policy extends to include coverage for Property, such as physical damage to machinery and hardware, Debris Removal off your property and Bodily Injury to people, arising out of incidents involving computer networks and systems.
The limits of indemnity available under this offering are up to USD 200m (approximately ZAR 2.6 Billion), which can be used as the base in which to build excess of loss towers. Although not limited to big business, the comprehensive wording and considerable capacity available under this product lends itself to organisations involved in energy, oil and gas, critical infrastructure, utilities, mining, distribution, logistics, manufacturing, transportation and heavy industry. One only needs to imagine the extensive blow to a business’s bottom line, should an automated manufacturing plant suffer a computer virus, planted in the system by a disgruntled ex-employee, resulting in the malfunctioning of the cooling system and burning of the building to the ground. Notwithstanding the costs associated with rebuilding the plant, replacing the machinery and loss of business income; the board of directors may also be liable to settle the hospital bills brought by injured workers.
The good news is that businesses can transfer cyber risk off their balance sheet by utilising pioneering risk migration solutions developed by carriers. Insurance, therefore, forms a key component in the greater risk management strategy – protecting the financial integrity of the business should an employee decide to go rogue on the network, a phishing attack email whereby one has won a luxury apartment in the Burj Khalifa in Dubai; or perhaps the Information Regulator decides to impose a R10m administrative fine on the business for non-compliance with the provisions allowed for under the Protection of Personal Information Act (“POPIA”).