FBC Re sees growth in demand for cyber risk cover

FBC Re sees growth in demand for cyber risk cover

By Insurance24

HARARE, FBC Holdings says demand for cyber risk cover through its reinsurance unit FBC Re has increased significantly since inception in 2015 as more business and individuals have realized risk associated with the digital world.

Group chief executive officer John Mushayavanhu told Insurance24 at sidelines of its results FY17 presentation that the company is now looking at the underwriting side of the business due to the increased demand.

“Demand for cyber insurance was low during the first days when we introduced it. People are now realizing that everyone is going digital and there is risk associated with that, hence more are moving to protect their assets,” he said.

He said is huge business, but the only compelling challenge now is associated to re-insurers and retrocessioneers to take up the risk.

FBC’s cyber insurance policy also covers business against terrorism financing. Zimbabwe is not immune to that potential and investors are now keen in ensuring that their investments are protected against such risks.

Accordingly, several leading African reinsurers have created capacity to underwrite terrorism risks on the African continent.

Cyber insurance provides coverage for liability to third parties after an attack especially where your identity is used to cause them to behave in a particular was leading to loss of money.

It further covers data recovery costs as well as crisis management expenses and it also pays for the legal costs to defend oneself or the company in instances where there has been a network breach and privacy of clients has been compromised.