The Insurance Commission (IC) is urging the insurance industry to develop products protecting Filipinos from cyber risks, following the WannaCry ransomware attack earlier this month.
In a statement issued over the weekend, Insurance Commissioner Dennis Funa said that the Philippines is lagging behind other countries in terms of the development of cyber insurance products despite the growing need for these products and their potential for growth. He encourages insurance companies to develop products that would protect individuals and entities against Internet-based risks.
“At present, it is only AIG Philippines Insurance that has an approved cyber insurance policy which is currently available in the market, while one leading non-life insurance company has submitted a proposed cyber insurance and data asset and network security products for approval of the IC,” Mr Funa said.
The Commissioner said the available cyber insurance product in the Philippine market offers protection against losses due to improper denial or approval of access to data; breach of computer software, system or security; or theft of a computer hardware, among others.
“By optional extension, cyber extortion liability may be covered which provides for payment in case of extortion loss as a result of a security threat, as well as payment for the cost of investigation to determine the source thereof. This coverage can directly address cyberattacks such as ransomware,” he added.
Other than the development of cyber insurance products, Mr Funa said there is also a need for the government, private institutions and the media to create public awareness of the benefits of having insurance protection against cyber risk.