Cyber-attack coverage gets consideration

The Office of Insurance Commission (OIC) is proposing cyber-insurance as an alternative for better risk management among commercial banks amid rising threats from cyber-attacks in the digital age.

OIC secretary-general Suthiphon Thaveechaiyagarn said cyber-attacks are on the rise, with severe cyber-attacks prevailing.

“Digital technology plays a vital role in today’s businesses, such as fintech, insurtech, digital identification, and cryptocurrencies,” Mr Suthiphon said. “This presents both opportunities to develop new products and distribution channels, but on the other side of a coin, it comes with risks.”

Since more companies have been adopting digital technology to better serve their customers, cybersecurity needs to beef up to reduce the risk of cyber-attacks that can create huge losses, as seen in many cases, he said.

Ransomware damaged public health services in Britain last year, while railway and other public services in Germany were also affected by this type of cyber-attack, Mr Suthiphon said.

In the US, leakage of personal information has raised concerns as one-half of US citizens have experienced theft of personal information.

A recent cyber-attack in South Korea also created damages worth US$72 billion (2.4 trillion baht), while Thailand also experienced loss of customer information from two large financial institutions.

“We should promote cyber-insurance as another risk management alternative for commercial banks,” Mr Suthiphon said.

Only eight companies offer cyber-insurance products and the prices are quite high, he said.

The need for cyber-insurance products is expected to increase going forward as many businesses are expected to support such growth, said OIC assistant secretary-general Kanungnij Sujitjorn.