08.11.2017
Erste Bank Launches Insurance Cover for SMEs to Handle the Impact of Cyberattacks
- Newly introduced insurance product protects entrepreneurs from the impact of cyberattacks
- Only 3% of Austrian SMEs are currently insured against such events
- Austrian companies targeted by 30 cyber-attacks per week
Almost half of all Austrian companies have already been victims of a cyberattack, whether in the form of malware or a hacker attack, at least once. Erste Bank, Sparkassen and s Versicherung are responding to this threat by expanding their product portfolio to include an insurance policy that is specifically designed to meet such eventualities: “s Cyber-Protect”. This new insurance product provides companies with all-round protection in the aftermath of a cyberattack. “Erste Bank has long been the leading banking partner for SMEs in Austria. With this new product, we are now in a position to also offer our SME customers comprehensive protection against the impact of cyberattacks,”, explains Stefan Dörfler, CEO of Erste Bank Oesterreich. s Cyber-Protect provides protection against cybercrime and data misuse and offers coverage of up to EUR 1 million – for damage recovery and claims against third parties. A team of highly qualified experts stands ready around the clock to immediately provide emergency assistance in three stages: telephone support, remote maintenance, as well as on-site assistance.
30 cyberattacks per week
The “Internet Security Austria 2016” report released by Austria’s Federal Chancellery at the start of 2017 provides conclusive proof that such an insurance product is sorely needed. In Austria alone, 30 new cyberattacks were reported to the authorities every week last year, an increase of 31% compared to 2015. The average monetary damage caused by such a cyberattack amounted to EUR 80,000. “If there is a break-in at a company, the resulting damage is covered by traditional business insurance. In the event of a digital attack, most companies are completely unprotected. Moreover, the damage that can be caused by stolen data is generally greatly underestimated. In addition to financial losses, a company's image and reputation can often suffer enormous damage as well,” Manfred Bartalszky, head of sales of s Versicherung, points out.
It can happen to anyone
A study by international audit company KPMG found that 92% of the companies surveyed were aware of the threat posed by cybercrime, nearly half had already experienced such attacks and 30% suffered demonstrable financial damage. “A little carelessness is often all it takes to paralyze a company and sometimes even drive it to the edge of ruin,” Dörfler explains. Despite these alarming findings, just 3% of companies in Austria are insured against the consequences of online crime, compared to the 60% of US firms that have such coverage.
Details on “s Cyber-Protect”
“Cyber-Protect” is an insurance product from the insurance firm Wiener Staedtische Versicherung. With immediate effect, this product is being offered to customers of Erste Bank und Sparkassen under the name “s Cyber-Protect” via s Versicherung in the framework of a cooperation agreement. The basic package of s Cyber-Protect covers those data losses and damages that, for example, occur due to illegal computer intrusions, malware, or cyberattacks and lead to computer systems being wholly or partly disabled or disrupted. In the event of an attack, the policy covers inter alia the costs for external IT specialists, overtime payable to IT professionals within the insured company, or damages caused by an interruption of business operations.