Sompo Japan to release a cyber product for IoT firms

sompo japan to launch cyber product

Sompo Japan Insurance will supposedly launch a cyber product within next year, with variable premiums depending on the risk level of companies with factories exposed to the internet of things (IoT).

The insurer reportedly partners with Hitachi Solutions to offer the policy, which will take into account how well prepared the client’s facilities are to deal with the possible cyberattacks. Clients with enough security measures will pay lower premiums.

Reportedly, Sompo will measure the risk which will be mirrored in the premiums. For the meantime, Hitachi is responsible of risk measurement via technology developed by Palo Alto Networks, a US-based security firm.

Many companies are investing in remote monitoring systems for their factories as a result of COVID-19 outbreak. However, these open up vulnerabilities to cyberattacks, which can massively disrupt operations. On June 08, Honda Motor was hit by a cyber-attack which paralysed operations at nine factories globally for around an hour. The very day, Argentine electricity distributor Edesur also was vulnerable to cyber-attack which disrupted its customer service systems.

It is believed that both the cyberattacks were caused by ransomware known as SNAKE or EKANS. A massive blackout across Argentina, Uruguay and Paraguay on June 16 was linked to the earlier attack on Edesur, but Argentina’s Energy Secretary Gustavo Lopetegui said that it was “unlikely” the blackout was caused by a cyberattack.