BKIC News

Cyber insurance considering digital transformation

07/06/2022

Bahrain Kuwait Insurance Company organized a First of its kind Cyber Insurance Forum on Thursday, June 2, 2022, held at Awal Hall in the Gulf Hotel.

The Forum presented the importance of Cyber Insurance, which contributes to protecting the assets of companies and institutions from data-destructive, cyber-attacks and ransomware.

Several strategic partners, including experts and specialists in the field of cyber-security and insurance, participated in this forum, Mr. Ilia Linova from (NGN International), Ms. Rebecca Jones from (Clyde and Co) and Mr. Simon Bell from (Marsh Middle East and Africa), in addition to Mr. Manoj Badoni, the Chief Underwriting Officer for the Bahrain Kuwait Insurance Company.

The forum was attended by many representatives from government agencies, and representatives from various sectors such manufacturing industry, trades, telecommunications, and hospitality sectors, in addition to many technology and information security companies.

During the forum, the speakers discussed the need to spread culture and awareness of the importance of cyber-security and the risks facing various companies and institutions through cyber and electronic attacks, and ways to deal with these increasingly devastating attacks on various companies and individuals.

A detailed explanation of global variables in the field of insurance and methods of dealing with cyber-attacks from a legal point of view were also discussed, in addition to presenting a set of examples related to claims and ways to deal with them.

Dr. Abdulla Sultan, CEO of Bahrain Kuwait Insurance Company, stated that according to the latest reports issued for the year 2021, ransom attacks increased by about 150% on an annual basis, noting that “this huge increase in cyber-attacks costs companies millions of dollars in payments. It Sometimes even destroys companies’ operations and data”. Dr. Sultan also indicated that “the insurance industry has developed pricing trends in providing cybersecurity services, through data analysis, and has drawn technical steps that institutions can take to build their electronic resilience and enhance their capabilities to quickly restore their activity, and to mitigate negative consequences in their institutions and other parties.”

Dr. Abdulla Sultan also pointed out that BKIC’s cybersecurity insurance policies cover the compensation for the costs that a party may incur for a breach, as the policy covers the cost of the breach itself and the damage resulting from it, the cost of data recovery or permanent loss, maintenance costs and material losses for damaged systems, compensation for Business interruption, as well as compensation for fines that may be imposed by government regulators, and costs that can be imposed by a court for a party.