Kiwi technology businesses need to ensure they are adopting risk management practices to remain at the forefront of the world stage, Delta Insurance says.
The New Zealand technology sector has developed an outstanding global reputation for innovation, however the ever-expanding scope of emerging technology stand as both the industry’s greatest strength and weakness, Delta Insurance general manager Craig Kirk says.
He says New Zealand companies should also consider tech liability insurance policies that aim to protect businesses from incurring substantial financial and reputational losses. Delta Insurance is the only locally owned and operated specialist liability underwriting agency in New Zealand.
As New Zealand’s third largest export behind dairy and tourism, the technology sector is one of the most vibrant and promising components of the New Zealand economy.
“Add to this a supportive government, industry advocates and educators (such as NZTech), along with few internal constraints on expansion both in New Zealand and overseas, it’s likely that we will see the technology sector continue to boom and grow for years to come,” Kirk says.
“In addition to creating value and thousands of jobs, the local technology sector epitomises Kiwi ingenuity and entrepreneurial flair. With exports amounting to nearly $7 billion and total revenue predicted to exceed $10 billion in 2017, the technology industry is carving out its own niche on the global stage, as well as shaping up to be an integral part of the New Zealand economy.
“Add to this a supportive government, industry advocates and educators (such as NZTech), along with few internal constraints on expansion both in New Zealand and overseas, it’s likely that we will see the technology sector continue to boom and grow for years to come.
“Yet in an increasingly globalised world, an industry which often relies on multi-regional interconnectivity faces a host of potential problems that can endanger businesses both large and small.
“As New Zealand technology businesses continue to expand their operations in a more globalised world, their exposure to liability risks increase in turn. Delta Insurance has just released a white paper on technology liability that talks about the risks faced by technology companies and how they can practically manage them
“Operating in a more globally interconnected business world not only increases risks to more litigious overseas jurisdictions, but can leave businesses vulnerable to a greater amount of cyber-risk.
“The risk of cyber security threats is probably the key issue facing the industry and each wave of cyber risk is becoming more sophisticated and potent than its predecessor. How technology companies tackle and manage this issue will in some cases determine whether or not they have a viable and sustainable future – the risk of getting it wrong could be catastrophic.
“Delta Insurance believes that sound risk management strategies which address new and evolving forms of risk should be at the forefront of protecting businesses.
“Dovetailing into these risk management strategies should be insurance coverage that is also constantly evolving to address new and varied exposures that technology companies face. Even with the most robust risk management procedures, litigation and disputes can still arise.
“Despite companies’ and organisations’ best risk mitigation efforts, an incident triggering a technology liability can still arise. It is here that tailored, up to date technology insurance policies aim to fill in the gaps of traditional and often out of date coverage and protect businesses from incurring substantial financial and reputational losses.
“Through proactive thinking, planning and innovation, we want to help ensure that New Zealand technology companies continue to grow and prosper so that they can remain at the forefront of the world stage,” Kirk says.