88 percent of business unprepared
NZI's research of 200 New Zealand business leaders showed that while they are becoming increasingly concerned about connectivity and data protection, they are not doing enough to protect their businesses against a cyber attack*.
Ryan Clark, NZI's National Manager Liability, says that as a country we are lagging behind in terms of the take up of cyber insurance, and businesses really need to think beyond insuring just bricks and mortar.
"We're living in the digital age which means cyber security is critical when it comes to protecting your business from the potential financial and reputational impact of a cyber attack."
"Our research has found that connectivity and data protection is what is increasingly keeping business owners awake at night, but few are taking steps to ensure their businesses could survive a cyber attack. Of greater concern, smaller businesses, that are less likely to bounce back from an attack, are the least likely to insure against them."
Only 6 percent of SMEs in New Zealand have cyber insurance, compared with 14 percent in Australia – leaving many Kiwi companies vulnerable to the potentially devastating impact of an attack. This is despite the growing rate of cyber attacks."
The US Department of Justice reported more than 4000 ransomware attacks per day in 2016, a 300 percent increase on the year before. Symantec also reported a significant increase in malware, with one in every 131 emails containing malware in 2016, an increase of 40 percent from the year before."
Here in New Zealand, last year the Department of the Prime Minister and Cabinet reported that one in five New Zealanders were affected by some sort of cyber crime, and 70 percent experienced a cyber security issue.
"Doing business online can expose your company to risks you may not have even considered. When these risks become a reality, the damage can have devastating consequences for your business," Mr Clark says.
"Gone are the days where businesses only need to consider fire, flood, theft and health and safety. When a crisis strikes, companies need support to get back up and running, which is why cyber insurance is so crucial in the world we live in today."
"Recent global attacks, such as WannaCry, are a reminder to us all about the importance of having the right cyber insurance protection. Businesses can help protect themselves from a number of cyber exposures from hacking attacks, viruses, privacy breaches and theft of data," he said.
For more information on insuring your business visit www.nzicyber.co.nz
*IAG Business Insurance – decision maker tracker is a quarterly survey carried out by Kantar TNS. Information included in this media release was sourced from the April 2017 survey, which included 200 businesses all over New Zealand.
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