Cyber-physical risk: a growing concern for South African companies

Cyberattacks are increasingly causing physical damage to operational technology in sectors like mining, manufacturing, and power grids. In South Africa and across Africa, many businesses remain uninsured or underinsured for cyber-physical risks, as traditional property insurance policies now commonly exclude cyber-related damage. The number of sites globally experiencing physical operational impairments from cyberattacks surged 146% in 2024. Real-world examples include attacks on a US fuel pipeline, a German steel mill, and hospital HVAC systems. Marsh recommends gap analysis of existing insurance programmes and specialised cyber-physical coverage to address this growing uninsured liability.