MAY 2022 | WWW.LAWYER-MONTHLY.COM industry has considered this and there are already products with compatible prices for these smaller segments of the economy. Are there particular digital threats or circumstances that cyber insurance by itself is not sufficient to copewith? Cloud storage is a challenge that is beginning to be overcome. There are situations that only recently the industry has noted, such as material damage from cyberattacks. Still, when I collaborated in developing cyber products, I remember that the mindset was to provide the best protection for insureds. What pitfalls should a company bemindful of when acquiring cyber insurance? Insureds should keep in mind that an adequate underwriting of the risk is very relevant for the contracting What significant regulations govern this variety of insurance in your jurisdiction? From the point of view of regulatory matters, recent changes in our regulatory body, the Superintendence of Private Insurance, have been highly positive. They have given greater freedom to agents and market operators to create and develop new products. Today, it is possible to design new products and adjust them to the reality of individuals and companies with an ease that was unthinkable only a decade ago, when Brazil was regarded as a non-business-friendly jurisdiction. From a cyber point of view, we have data protection laws inspired by the European model that put us at the forefront and place greater emphasis on the need to hire this type of Insurance. Under what circumstancesmight an SME stand to benefit fromcyber insurance? I believe that any company, even small and medium-sized, that develops its business in cyber environments should consider hiring this type of Insurance. The protection of network or virtual security is much more important than that of physical installations – evidenced, in many cases, by the temporary abandonment of physical spaces during the pandemic. For example, our law firm could undoubtedly carry out our activities with the same quality if we did not possess physical locations. With this, I do not want to belittle the importance of community experience at work. However, the fact is that we would hardly be able to provide any services if a denial-of-service attack, for example, made access to our network impossible. And the best thing is that the insurance In brief, what ismeant by cyber liability or cyber risk insurance? Cyber insurance is still relatively nascent in Brazil. I remember working in an English law firm for ten years when I first interacted with the segment. Of the first ten policies of this branch registered in Brazil, we participated in the creation of more than half. When talking about cyber risk insurance, the natural dichotomy between first-party and third-party insurance is overcome; here, it is a whole category of risks encompassed by the protection granted by the insurance. It is strictly protection against the generality of the damage that can result due to the exposure of the Insured in “cyberspace.” And, given the increasing level of dependence that individuals and legal entities and their executives and employees experience, it is natural that the list of protected risks continues to grow. The constant evolution that we experience with our “computer dependence” is extended to cyber risk insurance, and I do not doubt that this is currently the most promising branch. INSURANCE & REINSURANCE - DENNYS ZIMMERMAN 63 Insureds should keep inmind that an adequate underwriting of the risk is very relevant for the contracting of this product. The constant evolution that we experiencewith our “computer dependence” is extended to cyber risk insurance.