1Midlands State University, Insurance and Risk Management Department
2Midlands State University, Insurance and Risk Management Department
3Midlands State University, Tourism and Hospitality Management Department
4Midlands State University
Online published on 30 July, 2021.
Emerging risks are hard to identify, let alone anticipate their impact. It is imperative that insurance brokers be conversant with emerging risks such as cyber risk so that they can set themselves apart from other risk management providers. The world is now a global village, thanks to the internet and other technological advancements that have taken place. Although cyber risk is prevalent in the first world, it is important to note that cyber risk is increasing in the developing countries, and Zimbabwe is no exception. Insurance brokers must therefore provide effective cyber risk management and insurance solutions to cater to the Zimbabwean client. This study assessed the current risk management and insurance solutions that brokers are providing, and whether these solutions are effective in mitigating cyber risk. The study was based on convience sampling and 11 short term insurance brokers were used. 4 reinsurance brokers were also used to provide regional expertise. All samples are registered with the Insurance and Pensions Commission. The researcher utilised interviews and questionnaires to carry out the survey. The data gathered from the survey was presented and analysed through tables, charts as well as graphs. After assessment of the findings, the research concluded that the current cyber risk management and insurance solutions being provided by insurance brokers is not effective in mitigating cyber risk. The main reasons for this was due to the complex nature of cyber risk, lack of broker expertise as well as the lack of flexibility of the regional and international risk carries. The research also recommended that IPEC should assist in lobbying for a cyber Act so that regulations on the Zimbabwean cyber space are locations-specific and breach of these regulations can penalise offenders. The research noted that training and development of IT related courses as well as technical partnerships with regional and international brokers will assist in insurance brokers providing a bespoke cyber product offering unique to Zimbabwe.
