OneInfinity: Cyber Insurance Covers More Than Just Security Incidents – But Accidents Like IT System Outages from CrowdStrike As Well

24 July 2024 – A global technology outage that grounded flights, knocked banks and hospital systems offline and media outlets off air last Friday (19 July 2024) has sparked a worldwide outcry and exposed the vulnerability when global businesses are over-reliant on a handful of IT providers. Cybersecurity firm CrowdStrike said that the issue believed to be behind the outage was not a security incident or cyberattack but a faulty update to computers running Microsoft Windows.

The issue sustained for hours and impacted many critical infrastructure, causing long lines to form at airports in Asia, the U.S., and Europe as airlines lost access to check-in and booking services at a time when many travellers were heading away on summer vacations. Hospitals and doctor’s offices had problems with their appointment systems, while banks in South Africa and New Zealand reported outages to their payment system or websites and apps.

According to CyberWrite, a cyber insurance risk platform, economic damages could reach tens of billions of dollars in such events. Small and medium-sized enterprises (“SMEs”) are no exception to this. In a business environment that is increasingly becoming digitalized with new technologies including Artificial Intelligence (“AI”), every business must find ways to enhance financial security against the risks associated with damages and interruptions caused by emerging vulnerabilities.

OneInfinity Cyber Insurance provides all-rounded protection for local SMEs

OneDegree, known for its digital asset insurance solutions under the OneInfinity brand, expanded its portfolio recently with a new cyber insurance offering. Designed for SMEs, OneInfinity Cyber Insurance is offering flexible sum insured limits ranging from HKD 1 million to HKD 4 million that cover incident response, business interruption, data recovery, cyber extortion, and more. The application process is digital led with under 30 underwriting questions and a real-time cyber risk assessment powered by Cymetrics. Within minutes, eligible SMEs can get protected swiftly with instant policy issuance.

Rex Zhang, Chief Operating Officer of OneInfinity by OneDegree, emphasizes the critical financial implications of service outages: “When an outage occurs, service level guarantees from providers are often limited to the fees paid, which is insufficient. During such critical times, businesses not only face operational disruptions but also incur significant costs for remediation, lost employee productivity, and potential legal and regulatory penalties.”

He further elaborates, “Cyber insurance extends beyond security incidents to cover non-malicious events like system failures. OneInfinity Cyber Insurance is designed to protect SMEs from first-party losses due to security breaches and business interruption losses from system failures, such as the recent outage. This comprehensive coverage ensures that SMEs can maintain operational resilience and mitigate financial risks effectively.”

Addressing the gap against the growing tide of AI-driven cyber threats

Other than that, the digital domain is facing an unprecedented escalation of cyber threats, with emerging AI technologies presenting both immense potential and novel challenges. Alongside the exciting hype around Generative AI including Large Language Model (“LLM”) applications bring new types of vulnerabilities and uncertainties to businesses who are eager to become early adopters.

Recognizing the urgent need for evolved cyber protection, OneInfinity Cyber Insurance is specifically designed to confront this dual-edged reality, offering comprehensive coverage that spans both traditional cybersecurity events and the unique challenges introduced by AI-driven cyber threats.