A recent survey by Symantec, the company responsible for Norton Antivirus, has revealed that small businesses in New Zealand are failing to protect themselves with the right cyber insurance. In a world where cyber attacks are becoming a constant source of concern for everyone from health providers to big data specialists, why is New Zealand lagging behind?

The missing link for insurance

According to the survey, only about 6 per cent of small businesses have invested in cyber insurance, with a further 30 per cent considering doing so in the new year. This is a dangerous situation for Kiwis to be in, considering that almost one in five of our small businesses have experienced some form of cyberattack. This could be malware, ransomware, a malicious virus or even a hacking attempt.

"Cyberinsurance is an emerging trend as it presents an avenue for small businesses to become more resilient to a wide range of cyber risks and the costs associated with data breaches and business interruption. It can be a business's safety net when all else fails," explains Mark Gorrie, Director of the Norton Business Unit for the Pacific Region.

Why are Kiwis so slow to take up cyberinsurance?

There are a fair few things that New Zealand's relative isolation protects it from, and that includes cyber attacks - to a certain degree. In comparison to the United Kingdom, for example, cyber attacks are in fact relatively low. 18% per cent of businesses in New Zealand reported suffering a security breach in 2015 compared to 74% of UK businesses.

However, the reality is that while we may be less of a target than larger economies, cyber attacks are still on the rise.  It is not mandatory by law to report cyber incidents in New Zealand so numbers are conservative and a 2016 PwC survey found that cybercrime is now the joint second most-frequently reported economic crime. In 2014, it was only the fifth.

Combine this with the fact that only 45 per cent of New Zealand organisations have a cyber incident response plan and the apparent lack of cyber insurance, and it's clear there is a gap in protection for Kiwi business. 

You can solve that with a good cyber insurance policy.  It's a relatively new insurance cover and many insurers are still working towards offering a robust cyber insurance plan.  Rothbury can help you find the cyber solution that is right for your business needs. Get in touch with us today.

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