BY NATHAN GUMA
AS cyber attacks on mining companies surge, insurance broking firm Firstlink is turning to Artificial Intelligence (AI) to promote mining insurance. The development comes amid fears of an increase in cyber threats, as the sector continues to automate.
The company, which provides bespoke risk management and insurance solutions to clients, has been raising awareness of cybersecurity in the insurance sector. More companies are becoming digitalised.
Mining productivity is increasingly getting integrated with sophisticated computer- and cyber-based automation systems.
For instance, the mining sector has been embracing automation with self-driving haulage systems, vehicle monitoring control systems, collision avoidance mechanisms, and drones for aerial surveys. That raises the need for enhanced cybersecurity.
“With the growth of Artificial Intelligence (AI), this could also result in further cyber integration for mines,” said the company in a statement on its website.
“Globally, cyber-related attacks and losses in the mining space have increased over the years, from the 2010 combined attack on Rio Tinto Group, BHP Billiton Ltd., and Fortescue Metals, to more recently the 2023 Fortescue Metals Group (one of the largest iron exporters) cyber attack.
“Cyber risks are varied, and attackers can be your own employees, third parties exploiting your systems directly, or contractors with access to your systems. Breaches in the cyber arena can be caused by local or international attackers.”
How it works
Firstlink has been providing cover for data breaches, which have been excluded by traditional insurance policies.
For instance, it has been covering first-party losses, which include business interruption, restoration, and crisis communications, as well as third-party losses, such as data breaches, network interruption, and notification expenses.
The company also makes use of endpoints—devices that communicate back and forth with a network. These can include computers or mobile devices serving as points of entry and exit within a network.
An Endpoint Detection and Response (EDR) solution helps protect against malicious attacks by checking software and monitoring user behaviour. If suspicious malware is detected, it can shut down a user and trigger an alarm.
EDR also helps secure devices outside the traditional network due to remote working.
While mining entities have invested in monitoring, maintaining, and upgrading their IT and digital systems, the fast-paced nature of developments in this space poses a risk that they may be unable to prevent all cyber threats.
“The main effects of such attacks on mining operations include: disruption of supply chains, loss of financial and commercial data, compromise of employee safety and personal data, loss of exploration data and resource definition, loss of access to critical condition monitoring systems, disruption to autonomous mining operations, extortion, damage to company reputation, and disruption to production, subsequently leading to loss of revenue,” it reads.
Bespoke approach
The company has also been using a bespoke approach to insurance broking through its 360° Risk Management approach, which it says has helped address exposures by creating tailor-made solutions.
This process involves investigating and clearly defining the cyber risk exposures, as these differ according to the type of mining operation.
“These exposures should also be quantified financially to determine their worst-case scenario impact on client revenues should a loss occur,” it says.
“Pre-loss and post-loss scenarios are modelled, and we guide the client in developing an internal cyber risk management framework to complement the insurance being purchased. This results in an optimal programme design, with a clear balance between exposures, insurance cover, and premiums.”
Importance of AI in insurance
AI and technology analyst, Leonard Sengere told The NewsHawks that insurance companies should invest in AI while prioritising data protection, which will help them create bespoke products for their customers.
“Data has always been the lifeblood of insurance, but the challenge has been extracting meaningful insights from it. AI helps solve this problem, making data even more critical in the coming decade,” he said.
“Insurers who effectively leverage data will gain a significant competitive advantage. They will be able to offer better products, price them more accurately, and provide a superior customer experience.”
He said data will drive the development of innovative insurance products.
“AI will enable the creation of personalized policies—but this won’t be possible without high-quality data. By analyzing customer needs and risk factors, insurers can design tailored solutions for emerging markets and specific customer segments, moving away from the traditional one-size-fits-all approach.”
