Britam now unveils cyber risk cover

Britam Holdings managing director Benson Wairegi at the Britam Towers, Nairobi. [Elvis Ogina, Standard]

Britam General Insurance has entered into the cybersecurity market through the launch of a cover seeking to protect companies from cyber-based threats.

The policy by the subsidiary of listed Britam Holdings shields businesses against data breaches or malicious cyber-attacks and covers loss, damage, theft or corruption of to electronic data.

The cyber-risk cover also guards against property damage caused by a network security breach, business interruption and extra expense due to system failures.

Britam Holdings managing director Benson Wairegi said the cover is timely, given that the Kenyan economy experienced losses worth Sh29 billion in 2018 as a result of cyber-attacks.

New technologies

“Cyber security threats will continue to become more advanced not just in the financial sector, but in many other industries across the region,” said Wairegi during the launch on Thursday.

Britam General Insurance CEO Margaret Gathanga explained that cyber insurance could help offset financial liabilities when breaches occurr.

She noted that there is no cover presently in the market that shields companies from cyber threats. “With Kenyan businesses stepping up to digitise and embrace new technologies, the vulnerabilities are likely to increase. This demonstrates the urgent need for protection against such attacks,” she said.

The product has been launched ahead of a new government data protection policy that is in the works. Data from the Communications Authority shows that cyber attacks rose by 10 per cent in the first three months of 2019.