Data from the Communications Authority of Kenya (CAK) shows that cybercrime incidences in Kenya rose by over 50 percent in the fourth quarter of 2021 to 56.2 million, from 35.1 million threats reported in 2020. Kenya’s Business Daily report also indicate that savings and credit cooperative societies (SACCOs) lost Sh106 million in the 17 months to March 2021 due to cyber theft. These losses have been a result of an increase in the use of digital platforms for financial transactions.
Figure 1: nation.africa data on cost of cybercrime
This has led to a large number of companies to gear up for more secure digital platforms. But if they haven’t already, they should also consider investing in cyber insurance, also known as cyber liability insurance.
What is Cyber Liability Insurance?
Cyber liability insurance is a type of insurance that protects businesses and organizations from the financial consequences of a cyber attack, data breach, or other digital threat, covering the costs associated with responding to an incident and potentially providing compensation for loss or theft of data and business interruption. In Kenya, where the use of technology and the internet is increasingly prevalent in both the public and private sectors, cyber liability insurance is becoming an increasingly important consideration for businesses of all sizes.
In Kenya, there are a number of different types of cyber liability insurance policies available, each of which offers different levels of coverage. Some policies may only cover a single type of cyber incident, while others may provide more comprehensive coverage. It is important for businesses to carefully review the coverage provided by different policies and choose one that meets their specific needs.
Why take a cyber liability insurance cover
One of the main benefits of cyber liability insurance is that it helps businesses to cover the costs associated with responding to a cyber attack. This can include forensic investigations to determine the cause of the incident, legal fees, and public relations efforts to mitigate any damage to the company’s reputation. In the event of a data breach, a cyber liability insurance policy may also cover the costs of notification and credit monitoring services for affected customers, as well as any fines or penalties that may be imposed by regulatory bodies.
In addition to providing financial protection, a cyber liability insurance policy can also help businesses to meet their regulatory obligations. Many industries are subject to specific rules and regulations related to the handling of sensitive data, and a cyber liability insurance policy can help businesses to demonstrate that they are taking appropriate measures to protect this data.
There are a number of steps that businesses can take to reduce their risk of a cyber attack and protect themselves from the financial consequences of an incident. These include implementing strong passwords and security measures, regularly updating software and systems, and providing training to employees on how to identify and avoid potential threats.
While the cost of cyber liability insurance can vary widely depending on the size and nature of the business, it is generally considered to be a worthwhile investment for any organization that relies on technology and the internet to operate. By protecting against the financial consequences of a cyber attack, businesses can protect their bottom line and ensure their continued success in an increasingly digital world.
Companies to purchase cyber liability insurance from
Being a relatively new solution, there are very few insurance companies that can provide cyber liability insurance in Kenya. They include:
| Insurance Company | Best Feature |
| Britam | One of the largest commercial property and casualty insurers in the country. |
| AIG | The company includes preventable coverage in their policies. |
In conclusion, cyber liability insurance is an important consideration for businesses and organizations in Kenya, providing financial protection and helping to meet regulatory obligations in the event of a cyber attack or data breach. By taking steps to reduce their risk of a cyber incident and investing in a comprehensive insurance policy, businesses can safeguard their operations and protect their bottom line in an increasingly digital world.
