Cybersecurity Insurance: A Must-Have for South African Businesses in the Digital Age

In today’s age of digital transformation, businesses rely heavily on digital infrastructure and sensitive data. Unfortunately, cyberattacks have become increasingly frequent and sophisticated.

According to cybersecurity company Surfshark, South Africa now holds the fifth position globally in a ranking of countries most severely impacted by cybercrime. This underscores the critical need for South African companies to have a solid defence plan to protect their sensitive information and assets.

Risk Benefit Solutions Insurance Brokers (RBS) offers comprehensive cyber insurance solutions and strategies to help safeguard South African businesses amidst increasing cyber-attacks.

The Value of Cybersecurity Insurance

In the current landscape, where information is the new currency and cyber threats loom, Cyber Insurance holds immense value for South African businesses. Recent findings from Accentures research “reveal some organizations are using cybersecurity as a differentiator to deliver better business outcomes.” According to the study, businesses that actively engage in cybersecurity initiatives are “18% more likely to increase their ability to drive revenue growth, increase market share and improve customer satisfaction.”

Here are just a few benefits of Cybersecurity Insurance:

  • Data restoration/malware decontamination: Covers expenses related to recovering compromised or corrupted data during a cyber incident.
  • Cyber extortion losses: Assists in paying extortion response specialists to evaluate recovery options and negotiate ransom payment demands during a ransomware attack.
  • Privacy & data breach liability: Supports in recovering costs associated with compromised third-party information, addressing lawsuits and legal disputes, offering credit-watch services, and providing additional compensation.
  • Financial Losses: Reimburses funds lost due to a cyber incident or hacking of bank accounts, payment cards, or mobile wallets.
  • Costs resulting from identity theft: Covers reporting identity theft, re-filing rejected applications, notarizing affidavits, credit and identity theft monitoring, re-issuing identity documents, and lost wages.
  • Cyberbullying: Addresses costs related to cyberbullying or stalking, including content removal, lost wages, trauma benefits, and engaging experts to manage and protect reputation.

The Need for Cyber Resilience

While cybersecurity insurance provides a safety net, it’s equally important for businesses to focus on building cyber resilience. Here are some tips to enhance cyber resilience:

1. Cybersecurity Audits: Regularly assess and update your cybersecurity measures to identify and address potential vulnerabilities. This includes updating software, implementing strong access controls, and training employees on cybersecurity best practices.

2. Employee Training and Awareness: Employees are often your first line of defence. Educate them about the latest cyber threats, phishing schemes, and the importance of following secure practices.

3. Security Policies and Procedures: Develop and implement robust security policies and procedures. This encompasses controlling access, managing passwords, and developing incident response plans.

4. Collaborate with Cybersecurity Experts: Partner with cybersecurity experts to stay informed about the latest threats and implement advanced security measures.

About RBS

Risk Benefit Solutions, better known as RBS, originated as an entrepreneurial-focused services business in 1998 and today is one of the largest fully-fledged black-owned insurance brokers in South Africa and a Level One BBBEE contributor. Celebrating 25 years in business this year, our growth has contributed to offering clients a unique approach to risk management by positioning our skilled resources as an extension of our client’s risk management team. Our company covers various services, including Insurance Broking, Risk Management, Commercial and Corporate Risk Advisors, and Corporate Vehicle Hire Services. With its head office in Cape Town, RBS has offices in Gauteng, the Eastern Cape and globally, represented through its board membership with WING (Worldwide Insurance Network Group).