‘Individual cyber insurance’ to compensate hacking damage in USA….beginning stage in Korea
Lee Gyung Tak | kt87@ | 2017-04-05 10:15:11
There are going to be insurance products that offer financial compensation to individual consumers who are hacked online through hacking in the United States,.
According to Reuters on April 3 (local time), US insurance company AIG will release a cyber insurance product on April 10 to compensate for damages such as harassment and hacking in digital and online environments. The name of this product is ``Family CyberEdge``, which is different from the products that were mainly sold by companies that this insurance product targets individual consumers.
According to AIG, wealthy or socially famous people are targeted by hackers and their social media and online financial information is vulnerable. In addition to hacking nude photos of famous actors Leslie Jones and Jennifer Lawrence, senior US officials are also becoming hacker targets. Especially many people share the tendency to store their important personal information on the cloud platform via web and apps.
In addition, the US Cyber insurance market for individual consumers seems to be active as the US Congress recently decided to discard the regulations set by the former Barack Obama administration to protect personal information of users from Internet providers.
Meanwhile, unlike the US where the scope of coverage is expanded to individual consumers, the Korean cyber insurance market is still in its beginning stage due to industry recognition and lack of preparation. The government revised the Credit Information Act in September 2015, and companies along with institutions are required to insure liability insurance of up to KRW 2 billion, KRW 1 billion, and KRW 500 million, respectively, depending on the size. Although some insurance companies in Korea sell related cyber insurance products, it is limited to leakage of personal information. It is pointed out that there is a distance from cyber insurance which is commonly used internationally.
Kim Tae Sung, a professor of information security management at Chungbuk National University, explained, ‘There are two perceptions related to the domestic cyber insurance market. If we look at the personal information insurance, we can see that the cyber insurance market is active. Cyber insurance should be broken down into products according to the extent of damage, and most domestic cyber insurance related products are still in beginning stage.’
By Lee Gyung Tak kt87@
[ copyright ⓒ The Digitaltimes ]
According to Reuters on April 3 (local time), US insurance company AIG will release a cyber insurance product on April 10 to compensate for damages such as harassment and hacking in digital and online environments. The name of this product is ``Family CyberEdge``, which is different from the products that were mainly sold by companies that this insurance product targets individual consumers.
According to AIG, wealthy or socially famous people are targeted by hackers and their social media and online financial information is vulnerable. In addition to hacking nude photos of famous actors Leslie Jones and Jennifer Lawrence, senior US officials are also becoming hacker targets. Especially many people share the tendency to store their important personal information on the cloud platform via web and apps.
In addition, the US Cyber insurance market for individual consumers seems to be active as the US Congress recently decided to discard the regulations set by the former Barack Obama administration to protect personal information of users from Internet providers.
Meanwhile, unlike the US where the scope of coverage is expanded to individual consumers, the Korean cyber insurance market is still in its beginning stage due to industry recognition and lack of preparation. The government revised the Credit Information Act in September 2015, and companies along with institutions are required to insure liability insurance of up to KRW 2 billion, KRW 1 billion, and KRW 500 million, respectively, depending on the size. Although some insurance companies in Korea sell related cyber insurance products, it is limited to leakage of personal information. It is pointed out that there is a distance from cyber insurance which is commonly used internationally.
Kim Tae Sung, a professor of information security management at Chungbuk National University, explained, ‘There are two perceptions related to the domestic cyber insurance market. If we look at the personal information insurance, we can see that the cyber insurance market is active. Cyber insurance should be broken down into products according to the extent of damage, and most domestic cyber insurance related products are still in beginning stage.’
By Lee Gyung Tak kt87@