Product Designed to Address Cyber Threats Such as Hacking and Ransomware
Samsung Fire & Marine Insurance announced on April 28 that it has launched the industry's first Korean-language cyber insurance product for small and medium-sized enterprises, called "Samsung Cyber Comprehensive Insurance."
Cyber insurance is a product designed to address cyber threats such as hacking and ransomware attacks. It covers losses resulting from cyber incidents, including: property damage (response and IT recovery costs), business interruption losses, and various liability damages.
As cyber risks are rapidly increasing both domestically and internationally, the cyber insurance market is also experiencing rapid growth. However, existing cyber insurance products sold in Korea have been developed based on English-language policy terms from foreign insurers, and have mainly been sold to large corporations, which has been a limitation.
Samsung Cyber Comprehensive Insurance was developed with Korean-language policy terms specifically for small and medium-sized enterprises, improving customer understanding and accessibility. Companies with annual sales of 100 billion KRW or less and with fewer than 3 million individuals' personal information can enroll in the policy.
Existing cyber insurance products include "personal information protection liability" coverage, but the policy terms differ from those of the current mandatory insurance (personal information protection liability insurance). As a result, they have not met the requirements or have caused ongoing issues with duplicate coverage for policyholders.
Samsung Cyber Comprehensive Insurance addresses these issues by allowing existing mandatory insurance policyholders to exclude that section, while new policyholders can add mandatory insurance as a special rider. This approach meets the mandatory insurance requirements while expanding consumer choice.
The product applies differentiated rates and customized strategies according to the characteristics of each policyholder. When designing a policy through face-to-face channels, premium calculation and automatic underwriting are completed simultaneously without separate consultation, establishing an on-site, one-stop process.
Samsung Fire & Marine Insurance is leading the market not only for small and medium-sized enterprises but also in cyber package insurance for large corporate clients. Since the end of last year, the company has proactively responded to the growing domestic demand for cyber insurance by establishing a dedicated organization and building a collaborative system with professional institutions such as law firms and global risk assessment companies.
A Samsung Fire & Marine Insurance representative stated, "As regulations such as increased fines for cyber incidents and mandatory disclosure and reporting continue to be strengthened, demand for cyber insurance is rising. We hope that the launch of the Korean-language Samsung Cyber Comprehensive Insurance will encourage domestic small and medium-sized enterprises and institutions to actively utilize cyber insurance as a new safety net for cybersecurity."
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