Insurer Aon Kenya unveils policy to protect firms against cybercrime

Insurance broker Aon Kenya has launched an insurance policy aimed at protecting businesses from cyber risk.

The product -- Aon Cyber Enterprise Solution -- is among the first of its kind in Kenya and covers physical property damage, products liability, business interruption or supply chain disruption from cyber-attacks.

Aon Kenya chief executive officer Sammy Muthui said the product targeted at individuals, small and medium-sized firms as well as large corporations will enable businesses to protect themselves against cybercriminals, data loss and the potential ramifications of a cyber-incident.

The policy provides comprehensive cyber risk cover, including cover for property damage arising out of a network security breach, products liability to address new technology exposures, business interruption and extra expense coverage arising out of systems failure.

“Data is an organisation’s most valuable asset but it’s also most vulnerable asset. However, as businesses and companies grow, so do their exposure to cyber risk. This simply means that that as the value of a business grows, it raises its profile among hackers,” said Mr Muthui.

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Growing demand

Cyber-insurance has been gaining demand over the past 10 years globally in the wake of increased threats to business locally and on the global front.

This comes as tech-savvy criminals exploit weaknesses in IT systems to steal money, demand ransom or sabotage corporations.

Several studies have urged firms to embrace digital technologies to counter the disruption by financial innovations.

The Central Bank of Kenya (CBK) in June this year unveiled new guidelines to enable them deal with emerging cyber security threats.

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Mr Muthui said the launch of a cyber risk solution by Aon Kenya was a response to the growing cybercrime, threatening both corporates and SMEs alike.

He added that hackers were increasingly targeting sectors that are digital savvy, with the rise of financial technology and internet banking.

“The launch of our new cyber risk solution underlines our commitment to provide cover for the wave of new and emerging risks that worry risk managers the most,” said Mr Muthui.

Kenya lost about Sh18 billion to cybercrime in 2016, according to an ICT security survey conducted by Kenya National Bureau of Statistics and the Communications Authority of Kenya (CA).