Event discusses cybersecurity in Brazil

This Wednesday (21), in São Paulo (SP), the event “Jornada de Cibersegurança – do risk assessment ao seguro cibernético” was held. Organized by Horiens, the meeting brought together around 150 guests and featured three panels: Privacy and Security; Cyber Insurance in Brazil; and Journey to Adequacy of Cyber Risks.

According to Ronaldo Andrade, CISO (Chief Information Security Officer) at Horiens, the event was important for drawing attention to the risks to which companies are subject. “In addition to the financial impact and operational downtime, the potential reputational damage is very serious, as it diminishes people’s trust in the company that has been attacked.”

He explained that artificial intelligence makes the challenge of combating intrusions even more complex, as a very large volume of information can be extracted quickly. “The environment is much more complex now than it was a few years ago. Artificial intelligence has completely changed the way we deal with risk protection and analysis. For all these reasons, we always emphasize that this is a continuous journey that companies must remain attentive to.”

Francisco Paladino, Risk and Insurance Manager at Horiens, highlighted the growth of the cyber market in Brazil over the last five years. “According to data from SUSEP (Superintendence of Private Insurance), the total premium issued in 2019 was R$21 million. In 2023, it rose to R$205 million. But even so, there is still huge room for growth, since the American cyber insurance market, for example, produces around US$10 billion in premiums a year.”

According to Paladino, along with this, a sharp increase in claims was recorded in Brazil. “In 2020 it exceeded 103%, while in 2021 it ended the year at a still very high level of 97%. In 2022 and 2023 this was controlled, which shows that the cyber market is growing and becoming more professional, as companies are taking care to protect themselves. It’s also important to reinforce the logic of mutuality, i.e. the more companies take out insurance, the more insurers produce a premium cushion to protect the impact of claims on their portfolios, and so prices tend to fall,” he said.

Victor Perego, head of Cyber Insurance at AIG, one of the sponsors of the event, also highlighted the growing maturity of the local market, and how companies, brokers and insurers have been working together for a more accurate analysis of the risk when taking out insurance. “The rapid digital transformation, more frequent cyber attacks and regulatory frameworks of recent years have forced companies of all sizes and segments to adapt faster than they expected. Ten years ago, risks such as ransowmare, data leaks and digital crime were still far removed from our scenario. Today, these exposures are increasingly common, and insurance is an important advisory and contingency ally,” he said.

According to Perego, pricing is based on three pillars: the sector in which the company operates, the size of the organization and the maturity of the security controls. “More sensitive sectors require more care and specific analysis. For each sector, one type of control will be more relevant. The assessment and risk-taking will be different, for example, for an industry or a service company with remote work,” he added.

The meeting was also sponsored by Zurich and featured Hellen Deungaro Fernandes, head of Cyber Insurance at the insurer, as one of the panelists.

“All the points discussed at the event are addressed in the cyber insurance cover. Assessing risks, vulnerabilities in systems architecture and infrastructure is the core of the risk assessment that Horiens carries out before taking the risk to the insurance market. Having a specialist who manages this advisory service and who has full knowledge of the global cyber scenario because they work directly on this front is essential, and this is what sets Horiens apart. Companies of all sizes need to understand the importance of the issue and invest in improving processes and technology professionals,” Andrade concluded.

About Horiens

Horiens, a risk, insurance and guarantee manager, works on projects for the most diverse sectors of the economy, such as infrastructure, concessions and PPPs, transportation and logistics, energy, oil and gas, agribusiness and chemicals and petrochemicals, among others. The company, which celebrated its 45th anniversary in 2023, has four main areas of activity: Risk Management consultancy; brokerage for Asset Insurance and People Insurance (Health and Benefits); and Guarantee, Credit and Political Risk.