The Singapore SME cyber preparedness report by Chubb mentions that companies and organisations have been more at risk of having their data made public or stolen, be it through a deliberate cyber attack from an external or internal party or as a result of system error or human error.
Small and medium enterprises (SMEs) are at the heart of Singapore’s economy says the Singapore Government. Employing less than 200 people, they make up 99% of enterprises, employ two-thirds of the workforce and account for around half of Singapore’s GDP.
SME’s are clearly a huge part of the economy. They are interconnected profoundly with consumers and with organisations of all sizes, making their ability to protect themselves from cyber risks essential.
The results of Chubb’s survey reveal a significant gap between the hard reality of cyber risk and how well small companies are prepared to deal with it.
Source: Chubb SME Report
“Some SMEs believe they are too small to be targeted by cyber criminals or any internal issues will not greatly impact them. In effect, they think they are “too small to
fail. However, every report, survey or set of statistics on cyber events tell us that all businesses are exposed, whether big or small. ”– Andrew Taylor Cyber Underwriting Manager, Chubb Asia Pacific
The findings in the report do not reduce the impact of external attacks but demonstrate that companies need to ensure their internal affairs are in order at the same time as guarding against outside predators.
“Chubb’s claims data shows clearly that the majority of cyber or data issues have internal causes. Over the past 20 years of underwriting cyber insurance, it’s become clear to me that cyber risk is an enterprise-wide issue, it’s not just about technology. Good cyber mitigation strategies include strong governance processes, vendor management and employee education” – Andrew Taylor
The role of Insurers in this situation
Covering the cost of a cyber breach is critical for companies of all sizes, but particularly for SMEs. Since insurance transfers the financial risk from the SME to the insurer, this relieves the burden on the SME in the event of a cyber breach. However, 70% of SMEs surveyed in Chubb’s report have never purchased cyber insurance before.
This is why insurers are responding to the growing challenges of cyber risk to help secure the business world.
What is Chubb doing for their clients?
Chubb works towards promoting awareness about exposure to cyber losses and the grave need for cybersecurity measures. They also share expertise on risk management and encourage investment in risk reduction.
Chubb maintains the Chubb Cyber IndexSM which provides real-time access to Chubb’s proprietary data. Chubb has been handling cyber claims for nearly 20 years, and these metrics, along with public trend data, offer useful insights to partners and policyholders to help manage and reduce their exposure to future losses. Chubb further assists clients by providing an Incident Response Platform to help contain threats and limit potential damage to a client’s business and, importantly, learn from the incident.
Original Information sourced from Chubb SG SME Cyber Preparedness Report
Download report here
Hear from Andrew Taylor about Enabling the development of a robust cyber insurance market in Australia at the Cyber Insurance One Day Conference on Thursday 16th May 2019, in Sydney.