The number of hacker attacks on clients of banks, government institutions, or hospitals is increasing. Therefore, companies and individuals are not only trying to prevent data threats but also to limit the impact of potential attacks. One of the available options is cyber risk insurance. 

2/27/2024

In terms of recommendations and experiences, we interviewed Marko Antič, Head of Commercial of our Czech Branch.

It seems that hacker attacks are becoming more frequent lately. Do you see any common denominator among the companies that report attacks?

 I can't say that I've noticed any significant common denominator among the attacked companies. Every company, regardless of its size or business purpose, must pay maximum attention to securing their data. Hacker attacks are becoming increasingly sophisticated each year, and their fraudulent emails, applications, or websites appear more and more trustworthy. Most small businesses believe they are not interesting targets for hackers. However, the opposite is true. Hackers do not select a direct target. In most cases, the attack is conducted in masse on a large number of companies and organizations, knowing that in a few cases, the attack will be successful. And this can happen due to the failure of an individual or a security software system.

Can you provide specific examples?

To protect the privacy of our clients, I cannot be entirely specific. However, I can say that we have dealt with damage to a manufacturing company where the entire production was stopped by hackers. Another attack on the key systems of a nationwide service provider led to a disruption in online sales. The client utilized our Colonnade Cyber Services 24/7, thus minimizing losses from service interruptions. A somewhat unconventional case was the blocking of access cards to hotel rooms belonging to our client, with ransom demanded for their unblocking.

What is the best defense against these attacks?

The old adage still holds true: " The best defense is a good offense " The minimum basis is employee training and increasing their cyber literacy. Regular and secure data backups, process setup, and control mechanisms, and last but not least, a crisis plan in case of an attack.

What role does cyber risk insurance play in the above?

Cyber risk insurance usually comes into play when a client discovers that an attack has occurred. However, in the case of insurance from Colonnade, it is by no means just about paying out insurance claims, such as covering the costs of data restoration. Clients who have cyber risk insurance with our company have access to the Colonnade Cyber Services 24/7. The most significant component of the service in the Czech Republic and Slovakia is a free assistance line staffed by cyber security specialists from ARICOMA who analyze the extent of the attack with the client and recommend further action. If necessary, on-site intervention by security technicians is available directly at the client's premises, and last but not least, support from security experts in resolving the loss event, which speeds up the whole process significantly, is included. A new feature is the offering of a security screening with the issuance of a Security Score Card, a recognized certificate that clearly evaluates the client's cyber security and identifies critical areas.

As is evident from the above, our priority is to find new solutions and services that will help our clients with both preventive measures and dealing with the potential consequences of hacker attacks.