Table of Contents

• Why Cyber Insurance is Important for Individuals
• What does cyber insurance cover
• Benefits of cyber security insurance
• How to stay protected against cyber crime

Why Cyber Insurance is Important for Individuals

• According to Singapore police data, victims of cybercrime lost over $1.1 billion in 2024.
• Cyber insurance reduces the financial impact of a cyberattack and provides coverage for data breaches.
• Cyber insurance not only supports individuals in recovering from a cyber incident but also extends protection to family members, including the spouse and children living at the same address.

Most of our lives now revolve around our personal devices—it has become more than just a communication tool and is used for digital transactions and important banking needs. In 2024, mobile transactions accounted for 70.1% of online purchases in Singapore.

As our lives become increasingly intertwined with these personal devices, we are also more susceptible to cyberattacks, and there has been a steady rise in scam and cybercrime case where victims of cybercrime lost a record $1.1 billion in 2024, according to a report published on Straits Times.

Personal cyber insurance cover has become an essential measure to protect oneself against cybercrime-related risks, such as e-commerce scams, identity theft, and unauthorised transactions.

What does cyber insurance cover

Cyber insurance is designed to provide financial protection and support against cyber risks, including phishing scams, identity theft, cyber extortion, and damages caused by malware. It aims to help individuals manage the repercussions of cyber incidents by covering key expenses.

• Banking Protection: Covers financial losses resulting from phishing and smishing attacks, unauthorised access to your financial accounts, or fraudulent transactions carried out without your consent.

• Shopping Protection: Covers repair, replacement, or reimbursement for purchased items lost, damaged, delayed, or incorrectly delivered, including related shipping costs not covered by sellers or couriers.

Benefits of cyber security insurance

• Financial protection: One of the primary advantages of owning cyber insurance is its robust financial protection. Cyber criminals can use the stolen online banking details to transfer money out of the victim’s account. In fact, without a credit card, unauthorised online transactions can be made if the password is compromised. Cyber insurance plays a crucial role in such scenarios, offering crucial support in managing the impact of a scam and may help recover part of financial loss.
• Risk management: Insurers often provide recommendations on risk mitigation to help individuals improve their overall security position and reduce the possibility of cyber attacks. It enables them to adopt better risk management practices.
• Support for breach response: Individuals often get access to fraud specialists who assist them throughout the recovery process. The policy’s associated services also provide access to experts who can help in retrieving or replacing financial and personal identification documents. They may offer lawsuit protection and active cyber monitoring to minimise loss.

How to stay protected against cyber crime

Awareness is your first line of defence. Some practical steps include:

• Verify the sender’s identity before clicking on unknown links or attachments.
• Use strong, unique passwords and enable two-factor authentication.
• Confirm requests for payment directly with the organisation, rather than following the instructions in an email or message.
• Keep devices and software up to date with the latest security patches to ensure optimal protection.
• Report suspicious activity promptly to authorities.

Cyber insurance is an important measure for protecting individuals from cyber threats. By prioritising this essential protection, individuals can not only secure their financial future but also preserve their personal data, maintain peace of mind, and ensure quicker recovery in the event of a cyber incident.

Start your protection with us. Apply now.

FAQs on cyber insurance

1. What everyday actions increase cyber risks?

Clicking on suspicious email links, accessing Wi-Fi without protection, using repeated or weak passwords, and downloading unverified software or apps are some actions that increase cyber risks.

2. What is not covered under cyber security insurance?

Cyber security insurance, also known as cyber liability insurance, does not cover confidence scams, including love, job, and investment scams, physically lost or stolen credit cards, ordinary wear and tear of the device, or a person’s business, professional, and trade activities.

3. How does the cyber insurance claim process work?

Individuals who suffer from cyber loss can make a claim, much like the process with traditional insurance. The insurer will verify the details and applicable coverage, and reimburse them for approved out-of-pocket expenses, subject to the coverage limits.