More and more Canadians are hearing the same advice about protecting themselves from cyber attacks: use different passwords, use two-factor authentication, and consider personal cyber insurance.
However, thousands of people living in Canada still fall victim to cybercrime every year, showing the need for this type of insurance.
Depending on the provider and plan, this coverage can include everything from unauthorized use of bank accounts or credit cards to counseling and social media monitoring in case someone is cyberbullied.
Some plans help restore data and access to computers or home digital systems. Others offer professional help to clients if someone tries to extort them online.
While insurance for this type of incident is still relatively new, interest in it is growing along with the number of cybercrimes, insurance and online crime experts say.
Demand for personal cyber insurance in Canada
In Canada, as in the world, digital crimes are on the rise. Phishing, ransomware, malware, and other online scams are becoming increasingly common and can have a devastating impact on individuals and families.
Statistics Canada data shows that the number of police-reported cybercrimes in the country reached 74,073 in 2022, up from 71,727 in 2021 and 33,893 in 2018.
Personal cyber insurance is an insurance policy designed to protect individuals against financial losses resulting from cybercrimes.
In a 2022 survey of 1,605 Canadians and Americans, Chubb found that 39%, or two in five respondents, had purchased a personal cyber insurance policy.
It can cover costs such as:
- Repair of damage to computers and electronic devices: if your computer is infected with malware or ransomware, cyber insurance can help cover the cost of repairing or replacing the device
- Identity theft: if your personal information is stolen and used to commit fraud, cyber insurance can help cover the resulting financial losses
- Data loss: if your data is lost or corrupted due to a cyberattack, cyber insurance can help cover the cost of data recovery
- Legal costs: if you are a victim of a cybercrime and need to go to court, cyber insurance can help cover the legal costs
Variety of cyber insurance options
The personal cyber insurance market is still relatively new in Canada, but it is growing rapidly as demand for this protection increases.
Insurance companies are starting to offer a variety of personal cyber insurance policies, with different levels of coverage and prices.
Chubb, for example, has been offering this type of insurance since 2017. Through the company, Canadians can purchase insurance that will replace lost or stolen digital property or money from attacks and ensure that customers have a place to go if their home becomes uninhabitable.
The company also has coverage that pays for expenses related to hiring public relations, legal, and digital forensics firms to assist in the recovery of cybercrimes.
Another example is Aviva Canada, which started offering personal cyber insurance last August.
Its coverage starts at $6 per month and offers help with online fraud, computer and home system attacks, identity theft, data breaches, and cyberbullying and extortion.
The need for cyber insurance
The increasing number of cybercrimes and the potential financial losses they can cause highlight the need for personal cyber insurance.
This type of insurance can provide peace of mind and financial protection to individuals and families in the event of a cyberattack.
As the demand for personal cyber insurance continues to grow, it is expected that more insurance companies will offer this type of coverage and that prices will become more competitive.
It is important for Canadians to be aware of the risks of cybercrime and to consider purchasing personal cyber insurance to protect themselves and their families.