Some participants at the 5th GIBA Annual Conference and Exhibition.
Principals in the insurance industry have resolved to provide insurance cover for cyber-based risks most businesses encounter in the country.
Vice President of Ghana Insurance Brokers Association, (GIBA), Shaibu Ali said, “The amounts of monies that have gone in terms of cyber-based losses are huge. So it is necessary that we start to talk about this so that we position ourselves to provide cover or protection for our clients accordingly.”
“And what we are doing is that we do not have the capacity locally for that so we are collaborating with foreign providers as in insurance companies and reinsurers to provide us with the support to write the cover,” he said while speaking to JoyBusiness on the sidelines of the 5th GIBA Annual Conference and Exhibition.
Last February, a report released by Serianu Limited, an IT firm in Kenya has revealed that the economy lost a total of $50 million to cybercrime in 2016. Another report predicts that Ghanaian businesses are likely to lose $100 million from cyber-crime by end of this year.
The Cyber insurance, also known as Cyber Liability Insurance Coverage, is designed to help an organization offset costs involved with recovery after a cyber-related security breach and other malicious data attacks.
Digitization and innovation
In a keynote address, Paramount Chief of Essikado traditional area, Nana Kobina Nketsia, challenged brokers to devise new ways, in the face of technology, to meet demands of their clients in order to sustain their business.
He said, “Should brokers be weary? Yes, because change has come. Innovations are taking place and brokers may soon find their traditional role being taken over by Insuretechs and Fintechs. Change is happening, and it will catch up or overtake you.”
President of GIBA, Lena Adu-Kofi is optimistic digitization can help remove some loopholes including double-insurance in the industry.
She said, “With the low level of insurance penetration in the country, the main industry players have a greater responsibility of educating the majority of Ghanaians and also marketing our various products and services leaving us with no option than to go digital; the new marketplace.”