Risks that can cause losses for companies in 2021
According to MDS Brasil, cyber attacks, concern for employees’ mental health and business interruption are the main challenges
The Covid-19 pandemic showed insurers what are the main risks to be noticed and mitigated. Among them, there are Cyber risks, Mental Health and Business Interruption without material damage. It is for these risks that MDS Brasil innovates in its products and services to meet the growing needs and act alongside the risks that concern managers.
A report published by Allied Market Research pointed out that before Covid-19, in 2018, the cyber risk insurance market was worth $ 4.8 million. The projections for 2026 indicated an increase of 25%, jumping to a value of U $ 28.6 million. “When it comes to cyber risks, many companies were aware of hacker, phishing and malware invasions as growing challenges with the evolution of the internet, but with the advent of social isolation and the home office, employees of some companies started to access work for home computers and networks that are perhaps not as protected, ”says Ariel Couto, CEO of the broker and Americas Regional Manager at Brokerslink. “The market has evolved at an accelerated rate and attacks have become more sophisticated and frequent, which has led insurers to develop new coverages to meet these constant changes”, reiterates the executive.
The pandemic and the resulting social isolation also negatively impacted the population’s mental health. According to a study by the Psychology Institute of the State University of Rio de Janeiro (UERJ), cases of depression have doubled since the beginning of the quarantine, jumping from 4.2% to 8%, while the anxiety rates were 8, 7% to 14.9%.
Even more drastic and irreversible cases, such as suicides, have gained notoriety: the World Health Organization (WHO) says that for every person who commits suicide, there are another 20 people who make attempts. In sum, numbers like these call attention to the severity of psychological suffering and show the need to renew health initiatives in the business world so that actions ensure the physical and emotional well-being of workers.
The third risk that haunts the evolution of the business is the sudden interruption of activities without material damages that prevent work. It is the risk highlighted by the pandemic, which has forced many companies to stop to protect their employees. Although not so targeted, insurance focused on business continuity is essential for organizations in different segments that have financial losses due to situations that are not so easy to predict, which requires specialization of people and cutting-edge technology.