2026 October 06
Cyber threats continue to evolve rapidly, affecting organisations of every size, industry and geography. New Zealand incidents such as the Manage My Health and ZenTech breaches show the operational, financial and reputational consequences that can follow.
Cyber criminals are not only targeting large enterprises. Atmos Intelligence data indicates that more than 80% of identified incidents involve small and medium-sized organisations (‘SMEs’), with small businesses accounting for over 60% of those impacted. Often seen as easier targets, SMEs may also provide pathways into larger customers and supply chains.
Cyber risk is therefore not solely an IT issue. It is a governance, operational, financial and reputational risk that business leaders must actively manage.
Many incidents still begin with relatively simple methods that exploit human behaviour or common technical weaknesses, including:
Double-extortion ransomware has intensified the impact of attacks. Threat actors steal sensitive information before encrypting systems, then threaten to publish or sell it if demands are not met.
Cyber criminals also exploit unpatched and newly discovered 'zero-day' vulnerabilities, scanning exposed systems and gaining access before critical updates can be applied.
Understanding common entry points is an important first step towards improving cyber resilience.
Business email compromise
Fraudulent emails impersonate trusted people or organisations, enticing users to open attachments, disclose credentials or follow malicious links. AI is making these attacks more convincing and effective.
Exploitation of vulnerabilities
Attackers use automated tools to exploit unpatched and newly discovered vulnerabilities, access systems, steal data and deploy ransomware.
Third-party & supply chain compromise
Compromised suppliers, software providers and service partners can provide threat actors with a trusted pathway into customer systems and sensitive information.
While strong security controls are essential, no organisation can completely eliminate cyber risk. Cyber insurance is designed to assist businesses in responding to and recovering from cyber incidents by providing access to specialist support and financial protection.
Cyber insurance supports incident response and recovery through specialist expertise and financial protection. Subject to policy terms and conditions, cover may include:
Cyber resilience is most effective when organisations adopt a holistic approach that combines security, governance, and risk transfer. Cyber insurance is not a substitute for cyber security. It is one part of a broader strategy combining prevention, response and recovery. Together, ICIB and our cyber security partner Nectar believe cyber resilience is built on three core pillars:
1. Risk identification
Understanding your cyber exposure starts with an honest picture of what you actually have, not what you assume. That means knowing:
For most SMEs this picture doesn't exist until someone goes looking for it. A proper risk assessment turns assumptions into a prioritised list of exposures, so security spend goes toward what's most likely to cause a breach or a claim, rather than whatever feels most urgent that week.
2. Risk mitigation
Once the gaps are known, mitigation means closing them with practical, proven controls: multi-factor authentication on every account, a managed patching programme, 24/7 monitoring and response so an intrusion is caught in minutes rather than months, and tested backups kept separate from the main network. Staff training matters just as much as the technology, since most attacks still start with a person rather than a system.
Increasingly, businesses also want a way to prove this work is being done — to insurers, customers and their own boards. SMB1001 is New Zealand's cyber security standard for SMEs, and its Gold tier maps closely to the controls above. Achieving it gives a business, and its insurer, independent evidence that its cyber hygiene is more than a policy on paper.
3. Risk transfer
Using appropriate cyber insurance to protect the business from potentially significant financial consequences.
Together, insurance expertise and cyber security advice provide a fuller view of the organisation’s risk profile and the practical options available to reduce it.
Cyber criminals continue to seek organisations that are easiest to compromise. Although the threat landscape evolves, many attacks still exploit familiar weaknesses that can be addressed through sound governance, effective controls and ongoing vigilance.
Cyber resilience is a journey. Whether your organisation is beginning or maturing its programme, ICIB and Nectar can help identify risk, strengthen defences and prepare for recovery. Speak with us to review your current position and identify the next practical step for your business.
Questions or concerns?
For questions about your cyber risks or insurance cover, contact our Liability team -
liability@icib.co.nz
0800 644 444
Or speak with our cyber security partners at Nectar -
0508 632 821