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Cyber Risk Insurance

Al-Baraka Insurance Company

Presented by: Mr. Ali Al-Tayeb – Head of Sales Department

Overview

Al-Baraka Insurance Company held a specialized workshop titled “Transforming Cyber Threats into Manageable Risks,” presented by Mr. Ali Al-Tayeb, the company’s Head of Sales. The workshop aimed to raise awareness regarding the escalating cyber risks facing Libya’s critical infrastructure, with a specific focus on the telecommunications, banking, and oil & gas sectors.

The workshop reviewed the current global and local cyber threat landscape and provided real-world examples of attacks that occurred within Libya, highlighting their financial and operational impacts. Furthermore, it showcased the insurance solutions offered by Al-Baraka Insurance as a strategic tool for risk management. The session concluded with a set of practical recommendations aimed at enhancing the cyber resilience of Libyan institutions.

Introduction

The workshop opened with a welcoming speech by Mr. Ali Al-Tayeb, who emphasized the importance of Cyber Insurance in light of the rapid increase in digital attacks directly targeting the state’s critical infrastructure. He noted Al-Baraka Insurance’s commitment to supporting cybersecurity efforts by providing integrated insurance solutions and contributing to security culture through specialized workshops and training programs. The event was attended by over 26 participants from various vital sectors in Libya, reflecting a collective eagerness to cooperate in facing these growing challenges.

Workshop Themes

Presented by Mr. Ali Al-Tayeb, the workshop covered the following key pillars:

  • Pillar 1: About Al-Baraka Insurance CompanyA review of the company’s expertise in specialized insurance solutions and its commitment to cyber risk awareness.
  • Pillar 2: Purpose and Target SectorsClarifying goals: understanding the threat landscape, identifying vulnerabilities, learning from real incidents, and implementing effective risk management strategies.
  • Pillar 3: The Cyber Threat Landscape (2024–2025)An analysis of global and regional trends with a focus on the Libyan context and its unique challenges, such as political instability and digital transformation gaps.
  • Pillar 4: Vulnerabilities and Risks in Vital Sectors
    • Telecommunications: Risks to infrastructure, citing the attack on the LPTIC data center (LTT) as a real-world example.
    • Banking: Risks to financial institutions and foreign exchange platforms, citing the DDoS attack on the Central Bank of Libya.
    • Oil & Gas: Unique risks including phishing attacks, citing the attack on Zallaf Libya Oil & Gas.
  • Pillar 5: Cyber Risk Insurance SolutionsDetailed breakdown of core coverages, such as incident response costs, business interruption, data recovery, and third-party liability.
  • Pillar 6: Sector-Specific Tailored SolutionsHow insurance policies are designed to meet the unique needs of the telecom, banking, and energy sectors.
  • Implementation Strategy & Success StoriesAn explanation of the risk assessment and coverage design process, featuring case studies of successful cyber insurance implementation.

The Evolving Threat Landscape

Mr. Ali Al-Tayeb explained that Libya, like other countries in the region, faces a continuous escalation in the volume and complexity of cyberattacks. He noted that the average cost of a data breach in the MENA region reached $5.8 million in 2024, with business downtime averaging 23 days. He added that local factors, including political instability, increase the risk of strategic attacks on critical infrastructure that threaten national security.

Real-World Examples and Impact

The analysis of real incidents was a highlight of the workshop:

  • LPTIC/LTT Data Center Attack: Demonstrated how persistent attacks can disrupt nationwide communication services.
  • DDoS Attack on the Central Bank of Libya: Showed how vital financial platforms are targeted and how techniques like Geo-blocking serve as an effective initial response, though they highlight the need for specialized protection.

The Role of Insurance in Risk Management:

Mr. Al-Tayeb stressed that while cyber insurance does not prevent attacks, it provides a vital financial and operational safety net. Coverage includes financial compensation and immediate access to expert teams for incident response, crisis management, and digital forensics, thereby reducing downtime and accelerating recovery.

Recommendations

  1. Adopt a Proactive Approach: Libyan institutions must shift from reactive responses to proactive risk management strategies where insurance is an integral component.
  2. Invest in Human Awareness: Since many attacks stem from human error, training programs must be intensified to help employees identify phishing and social engineering attempts.
  3. Allocate Adequate Budgets: IT budgets must reflect the growing importance of cybersecurity. Senior management should view cyber insurance as a necessary operating expense rather than a luxury.
  4. Strengthen Public-Private Cooperation: Close cooperation between government agencies and private companies is essential for sharing threat intelligence and coordinating response efforts.
  5. Conduct Comprehensive Risk Assessments: Institutions should collaborate with experts to identify vulnerabilities and design insurance coverage that fits the scale and nature of their operations.