Micro-captives face many of the same issues and exposures as SMEs when it comes to cyber risk, whether it’s protecting personal information, confidential corporate records or even their ability to operate, according to Lori Bailey, global head of specialty lines at Zurich.
On November 23, 2016, Zurich published the results of its annual global small and medium-sized enterprise (SME) survey, which highlighted that cyber risk awareness is increasing among SMEs.
According to Zurich, only 10 percent of SMEs said that they were too small to be at risk of falling victim to cyber crime, compared with 17 percent of those that thought that they were too insignificant to attract the attention of cyber criminals in 2015.
Zurich claimed that: “With the number of high profile cyber security breaches in the media over the last year, it is not surprising that the risk awareness amongst SMEs has grown significantly, yet alarming that the vast majority of SMEs do not have the appropriate cybercrime protection measures in place.”
Bailey warned Captive International that it’s also “crucial” that micro-captives have the same level of awareness of cyber risks globally as their SME counterparts.
“While cyber risk cannot completely be avoided, focusing on cyber resilience is the best way to mitigate any exposure,” Bailey added.
“This includes robust and holistic risk management practices, business continuity and disaster recovery plans and proactive security measures to protect themselves against such risks.”
Zurich Insurance, North America, Lori Bailey, Captive, Insurance, SME, Cyber risk, Risk management, Global SME survey