Insurance: Britam unveils cyber risk cover

Britam Holdings Group Managing Director Benson Wairegi. [File, Standard]

Britam General Insurance has entered into the cybersecurity market with 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 shields against cyber extortion and property damage caused by a network security breach, business interruption and extra expense due to system failures.

Britam Holdings Group Managing Director Benson Wairegi said that the cover was timely with the Kenyan economy having experienced losses worth Sh29 billion in 2018 as a result of cyber-attacks.

“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.

The cover is all-rounded and targets big firms, Small and Medium Enterprises (SMEs), hospitals, corporates and parastatals.

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

She noted that there lacked a cover presently in the market that shielded companies from cyber threats.

“With Kenyan businesses stepping up to digitize and embrace new technologies the vulnerabilities are likely to increase, this demonstrates the huge need for protection against such attacks,” she said.

The product comes on the back of a new government data protection policy that is currently in the works and a stern warning by Central Bank of Kenya Governor Patrick Njoroge that directors of banks and other financial institutions would be held responsible in cases of breaches of customer data.

Data from the Communications Authority (CAK) also shows that cyber-attacks rose by 10 per cent in the first three months of 2019 with 11.2 million Kenyan organisations being victims.