Huge losses due to computer attacks noted

Majority of companies doing business over the Internet have had their security systems breached by at least one computer virus resulting in information loss and theft of data and trade secrets.

Citing an industry study conducted by PriceWaterhouse Cooper (PWC), Ayala Aon Risk Services Inc. president and chief executive officer Jaimes Matti said computer attacks via the Internet increased by 183 percent from 1998 to 1999.

"All that translates into loss of revenue. So all companies need to look into and address their exposure from the Internet. Otherwise, they leave themselves quite vulnerable," he said.

Matti pointed out that affected firms may have to face suits from angry customers who may be denied service and suits for transmitting viruses among others.

Since the new networked economy is practically in its infancy stage in the Philippines, he said there are a lot of inherent risks involved in the system which have to be addressed as soon as possible.

"With the rise in disposable income, many will go to the Net so we have to be prepared for this. We're just beginning. This is the wave of the future so we have to anticipate various losses," he said.

Lawerence Lee, regional director of Aon Asia, the world's second largest insurance brokerage and risk management consultancy firm, said they want to educate the people as to the importance of insurance and risk management programs.

As a first step, Aon Asia together with Ayala Aon, a joint venture between Ayala Corp. and Aon Corp., will conduct a half-day seminar dubbed dot.com@risk on May 24 to direct the people's attention to various risks involved when they venture into the Internet arena as well as explore how such risks could be prevented, reduced or transferred.

However, Lee said people should realize that insurance is the last resort and is not the solution to the problem.

With its advanced computer resources, Lee said they could help companies evaluate, design, market, implement and monitor complex insurance and risk management programs suited to individual needs.

On the other hand, Matti said Ayala Aon is currently talking to three new dot.coms on the possibility of providing the service but he refused to provide other details.

Matti is confident that in three to five years, the insurance and risk management industry will experience a boom in the country with Ayala Aon establishing itself as the market leader. So far, no other company offers such service locally.