By Morishita Tomoki and Eguchi Eisuke
More and more insurance companies that compensate the victims of illegal computer access and other cybercrimes are signing cooperation agreements with the police. The cooperation is intended to encourage general insurance companies that have received reports of damage from companies to have the companies also report the damage to the police. The reason is that companies that have fallen victim to cybercrime tend to deal with damages behind the scenes.
The Saitama Prefectural Police signed mutual cooperation agreements with Sompo Japan Insurance, Mitsui Sumitomo Insurance, and three general insurance companies that handle cyber insurance in December 2021.
Cyber insurance compensates companies that have fallen victim to cybercrimes for damages they and their business partners have incurred, the cost of investigating the extent of damage, and system restoration cost. This prompts many companies that do not report damage to the police to report to general insurance companies to be compensated. So the agreements stipulate that general insurance companies that have received reports of damage from companies should encourage them to also report the damage to the police.
This is also beneficial for general insurance companies. A representative of a major non-life insurer says, “We can minimize damage and limit insurance payments by cooperating with the police.”