Johannesburg, South Africa – Allianz Commercial’s Complex Claims Handler, Mukondeleli Masiza, delivered crucial insights on cyber risk mitigation at the SNG Grant Thornton Cyber Security Awareness Summit, held at The Radisson Blu Gautrain Hotel in Sandton recently.

In her presentation, titled "Risk Transfer as a Tool in Cyber Risk Mitigation: Cushioning the Blow through Cyber Insurance," Masiza addressed the rising trends in cyber claims and effective strategies for mitigating cyber risks.

According to the Allianz Commercial Cyber Security Resilience Report for 2024, there has been a significant increase in both the frequency and severity of cyber claims. Large cyber claims, defined as those over €1 million, surged by 14% in the first half of 2024, while their severity escalated by 17%.

Proactive Measures for Cyber Risk Mitigation

Masiza emphasized the importance of proactive measures such as early detection, swift action, and risk transfer solutions. “Early detection minimizes financial and reputational impact by allowing for quicker isolation of impacted systems and data,” she noted. “Detection tools automate and expedite tasks such as forensics and notification, improving the overall crisis management process.” Allianz Commercial’s findings indicate that organizations deploying cybersecurity AI and automation reduced the cost of a data breach by around $2 million on average.

Swift Action and Preparedness

Highlighting the role of swift action, Masiza recommended, “Robust incident response plans and regular drills ensure that teams are prepared. Swift action following early detection can stop a cyber incident from escalating, facilitating faster recovery and restoration of normal operations.”

The Role of Cyber Insurance

Masiza underscored the importance of cyber insurance, stating, “Cyber insurance provides financial coverage for various costs associated with data breaches, including IT forensic investigations, data recovery, and system restoration. Apart from the benefits of the cover provided, insurers can also offer valuable advice on loss prevention and mitigation, along with access to expert consultants and response teams.”

Support and Coverage

She further highlighted the comprehensive support provided when an insured reports a cyber breach. “Upon reporting a new incident, the Allianz Commercial claims team swiftly engages with the affected company to assess the situation and implement containment measures. They coordinate with incident response teams, including IT forensic experts, attorneys, and PR specialists as needed, to conduct thorough investigations and provide the necessary support.”

Underwriting Considerations

Masiza provided an overview of underwriting considerations, advising that factors such as the company’s industry, size, risk profile, and existing cybersecurity measures are evaluated during the underwriting process. Important considerations include data governance standards, transparency regarding the use of consumer data, and cybersecurity measures within the supply chain.

Guidance for Securing Cyber Insurance

She also offered guidance on securing cyber-related cover, emphasizing the role of experienced brokers. “Brokers play a vital role in explaining complex insurance terms, assessing specific business needs, tailoring policies, and conducting thorough risk assessments to identify potential vulnerabilities and recommend mitigation strategies. Companies looking to secure cyber cover should enlist the services of an experienced broker with a history of placing this type of cover, as it is quite specialized.”

Protecting Business Dreams

“Allianz Commercial understands that insurance is designed to protect the dreams of business owners and the families dependent on the salaries earned by the employees of such entities. A huge part of our role is to protect those dreams by ensuring that our Insured is up and running as soon as possible,” Masiza concluded.

Join the Allianz Commercial Webinar on Cyber Security Resilience

To further share how companies can best prepare and respond to cyber-attacks, Allianz Commercial is hosting its Cyber Security Resilience 2024 webinar on November 5, 2024, from 4 - 5 pm CET. During this 1-hour session, Allianz Commercial leading experts will discuss the latest cyber claims trends, loss drivers, and provide insights on how companies can best prepare and respond to these developments. Speakers include Marek Stanislawski, Allianz Commercial Global Cyber Underwriting Lead; Michael Daum, Allianz Commercial Global Head of Cyber Claims; Sabrina Sexton, Allianz Commercial Cyber Underwriting Lead SME and MidCorp; Tresa Stephens, Allianz Commercial Regional Head of Cyber North America; and Rishi Baviskar, Allianz Commercial Global Head of Cyber Risk Consulting.

This is an excellent opportunity for to gain deeper insights and practical guidance. To sign up for the webinar, please register at the following link: Webinar Registration.

For further information, please contact:
Johannesburg: Lesiba Sethoga
lesiba.sethoga@allianz.com

About Allianz Commercial

Allianz Commercial is the center of expertise and global line of Allianz Group for insuring mid-sized businesses, large enterprises and specialist risks. Among our customers are the world’s largest consumer brands, financial institutions and industry players, the global aviation and shipping industry, as well as family-owned and medium enterprises, which are the backbone of the economy. We also cover unique risks such as offshore wind parks, infrastructure projects or film productions.

Powered by the employees, financial strength, and network of the world’s #1 insurance brand Allianz, as ranked by Interbrand, we work together to help our customers prepare for what’s ahead: They trust us to provide a wide range of traditional and alternative risk transfer solutions, outstanding risk consulting and multinational services as well as seamless claims handling.

The trade name Allianz Commercial brings together the large corporate insurance business of Allianz Global Corporate & Specialty (AGCS) and the commercial insurance business of national Allianz Property & Casualty entities serving mid-sized companies. We are present in over 200 countries and territories either though our own teams or the Allianz Group network and partners. In 2023, the integrated business of Allianz Commercial generated around €18 billion in gross premium globally.

These assessments are, as always, subject to the disclaimer provided below.

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Deviations may arise due to changes in factors including, but not limited to, the following: (i) the general economic and competitive situation in Allianz’s core business and core markets, (ii) the performance of financial markets (in particular market volatility, liquidity, and credit events), (iii) adverse publicity, regulatory actions or litigation with respect to the Allianz Group, other well-known companies and the financial services industry generally, (iv) the frequency and severity of insured loss events, including those resulting from natural catastrophes, and the development of loss expenses, (v) mortality and morbidity levels and trends, (vi) persistency levels, (vii) the extent of credit defaults, (viii) interest rate levels, (ix) currency exchange rates, most notably the EUR/USD exchange rate, (x) changes in laws and regulations, including tax regulations, (xi) the impact of acquisitions including related integration issues and reorganization measures, and (xii) the general competitive conditions that, in each individual case, apply at a local, regional, national, and/or global level. Many of these changes can be exacerbated by terrorist activities.

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