Insurance industry urges NZ SMEs to strengthen cybersecurity amid rising attacks
Insurance industry urges NZ SMEs to strengthen cybersecurity amid rising attacks | Insurance Business New Zealand
Cyber
Insurance industry urges NZ SMEs to strengthen cybersecurity amid rising attacks
Firms outline key trends to watch out for
Cyber
By
Roxanne Libatique
Marsh and Delta Insurance are urging small to medium-sized enterprises (SMEs) in New Zealand to prioritise cybersecurity measures as cyberattacks continue to target businesses of all sizes.
Both firms highlighted the increasing risks posed by cybercriminals and emphasised that proactive cybersecurity practices and insurance coverage are critical to protecting SME operations.
Growing number of cyber risks
SMEs in New Zealand face a growing number of cyber risks similar to those seen in Australia, where frequent cyber incidents underscore the need for enhanced protection.
Stricter data privacy regulations
Around the world, governments are tightening data privacy rules, and New Zealand is no exception.
Compliance with the New Zealand Privacy Act 2020 and other emerging regulations is becoming more critical for businesses of all sizes, with penalties for non-compliance potentially adding to the financial burden of a cyberattack.
Social engineering and business email compromise
A growing threat to SMEs comes from social engineering attacks, particularly business email compromise.
Persistent ransomware attacks
Ransomware continues to be a serious issue, affecting companies across industries.
Marsh warns that ransomware is not exclusive to large corporations – SMEs are also at risk. A ransomware attack can disrupt key operations by locking businesses out of their own data and systems, with recovery often requiring either the payment of a ransom or extensive IT restoration efforts.
Delta Insurance said it offers additional resources alongside insurance coverage, such as cybersecurity training for employees and risk management tools to help businesses strengthen their defences.
Marsh also stressed that cyber insurance should be an integral part of a business’s overall risk management plan, complementing other cybersecurity efforts.
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