Cybercrime insurance and its relevance to the Maltese market

Abstract

Cybercrime insurance is a type of insurance which is used by corporations who wish to protect their computer system against exposure to cybercrime. This policy will pay upon the occurrence of an insured risk on the system of the company. It covers a wide exposure of risks provided it transpires in cyberspace. The opportunity cost to introducing such a policy in a business portfolio is the investment in a high technology security system which attempts to prevent any risk from occurring in the first place. Nonetheless, 'Cybercrime insurance is a necessary hedge but not a substitute for solid business and IT systems that guard against breaches.' (Kalyanam, et al., 2012) This study was conducted with the aim of gauging the level of awareness of Cybercrime insurance in Malta. The main focus of the research was directed on companies and the public in general. Outcomes of the study show that the Maltese population, with particular reference to companies and the public in general, is undeniably lacking in knowledge and awareness of Cybercrime insurance. The cause of this might be the dearth of companies offering this policy. Cybercrime insurance is only offered by one local company as part of a package, but none has as yet introduced this policy as a stand-alone product.