The rapid development of computer, the Internet and information technology has led many companies in the world to revolutionary ways of doing business. The use of cloud computing, applications or big data, however, does not necessarily mean things becoming easier to do and risk-free.
The Indonesia Security Incident Response Team on Internet Infrastructure recorded more than 207.9 million cyber attacks in Indonesia between January and October in 2018.
Such attacks could cause data leaks and losses that may lead to legal issues and financial damages, as well as harm a company's reputation and public trust towards companies.
Ironically, many companies believe that investing in security software or outsourcing Information Technology solutions is suffice to save them from losses in the cyber world.
Unfortunately, it is not.
Take a look at data violation cases happening to the world's top companies. They suffered huge losses despite the fact that they had already deployed anti-virus software and employed IT professionals to guard their systems.
In 2018, data theft accounted for 63.5% of all identified cyber attacks. Data theft commonly hit the manufacturing, health services, transportation, retail and financial services sectors.
Lloyd said cyber attacks potentially caused at least US$85 billion to US$193 billion in losses across the world. The Asian region was estimated to have potential losses of US$19 billion, the third most suffering from cyber attacks after the United States and Europe.
Unfortunately, only 14% of the potential losses were covered by cyber insurers.
So, who would be in need of cyber insurance?
Among those very vulnerable to cyber attacks are companies that keep data and rely on computers and the Internet, such as companies that provide hotel services, financial services, education services, health services and tax services.
In fact, a security software developer Symantec, research found out that small- and medium-sized enterprises were also prone to cyber attacks because of their relatively weaker security systems.
According to Symantec, 40 percent of all cyber attacks have targeted small- and medium-sized companies since early 2010. That compared with 28% percent of the attacks targeted to bigger companies.
It is for that reason that AIG Indonesia is offering an innovative solution via CyberEdge.
CyberEdge is a product that helps protect companies or institutions that suffer from losses incurred by data or network security breaches. Such losses may range from fees for hiring forensic advisors, to costs for hiring legal advisors because of the presence of consumers' sensitive data violations, to costs from data recovery, and to costs due to cyber extortion.
In addition, CyberEdge also provides extra protection for companies spending on public relations consultancy in attempts to manage reputation damages due to data breaches.
Cyber insurance has already gained popularity in the United States in the past decade and is rising in Japan. But, it is relatively new to Indonesia, with AIG Indonesia launching CyberEdge only in 2015.