Cyber ​​insurance…a fundamental pillar for enhancing digital security in the UAE

Abu Dhabi, May 24 / WAM / The UAE Government’s Cyber ​​Security Council stressed the importance of the concept of “cyber insurance” in light of the accelerating digital transformation that the world is currently witnessing, as cyber threats have become a real challenge for individuals and institutions alike.

The Council explained that the concept of “cyber insurance” has emerged due to successive technical and technological developments, as one of the modern tools for managing digital risks and reducing their economic and operational impacts, as cyber insurance is a financial protection system that aims to cover losses resulting from accidents and electronic attacks, such as hacking systems, leaking data, and disrupting digital services.

He pointed out that this type of insurance includes a range of coverages that may include the costs of accident investigation, data recovery, and legal notification of those affected, in addition to potential compensation and lawsuits, providing a safety umbrella that helps institutions recover quickly and reduce the financial impact of attacks.

The Council stated, in statements to the Emirates News Agency, WAM, that the cyber insurance market in the UAE is currently estimated at about $70 million, which reflects the growing awareness of the importance of this type of protection, in light of the increasing reliance on digital solutions in various sectors. This growth is also driven by the increase in the volume of data that is traded and stored via electronic systems, whether in the government or private sector.

The Council expected that cyber insurance premiums would witness a significant increase in the coming years, as a result of the increasing size and complexity of risks, in addition to the rising cost of dealing with cyber incidents, which are no longer just simple individual attempts, but rather have become organized operations that use advanced technologies, such as artificial intelligence and social engineering, which makes the cost of responding to and recovering from them higher than before.

The Council indicated that about 80% of institutions and companies in the Emirates have become aware of the importance of cyber insurance as an essential part of risk management strategies, pointing out that cyber insurance cannot be considered a substitute for basic preventive measures, but rather a complement to them, which highlights the need to adopt a comprehensive approach that combines technical protection and financial insurance in a way that ensures reducing the possibility of hacking on the one hand and reducing its effects if it occurs on the other hand.

The Council stressed the importance of cyber insurance, especially in vital sectors such as financial services, health care, and energy, where any cyber attack could lead to the disruption of basic services or the leak of sensitive data with a wide-ranging impact. In these cases, the losses are not limited to the financial aspect only, but also extend to reputation and trust, which are elements that are difficult to compensate easily.

He explained that cyber insurance contributes to enhancing the culture of compliance with regulatory standards, as many insurance companies require the availability of a minimum level of cyber security procedures before granting insurance coverage. This in turn prompts institutions to improve their level of security readiness and follow the best international practices in this field, which reflects positively on the level of general protection for the digital sector.

The Council stressed that the future will witness greater integration between insurance companies and cybersecurity service providers, as integrated solutions will be provided that combine prevention, insurance, and response to incidents. It is also expected that data and analyzes will play an increasing role in risk assessment and pricing of insurance policies, ensuring greater accuracy in determining the actual needs of each organization, and thus adopting an integrated cybersecurity strategy based on a combination of technical measures, regulatory measures, and insurance solutions. Effective protection is no longer limited to firewalls and software, but also includes the ability to quickly recover and reduce damage in the event of attacks.

The Cybersecurity Council noted that adopting a culture of cybersecurity contributes to enhancing efforts aimed at combining advance preparation and effective response to ensure business continuity, data protection, and enhancing confidence in the digital environment, especially in a world where threats are increasing at an unprecedented pace, which emphasizes the importance of cybersecurity along with preventive measures within the framework of an integrated system of proactive measures that place digital security at the top of priorities.

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