Home > Property & Casualty > UAE disrupting data security exposes tech companies to expanded risks

UAE disrupting data security exposes tech companies to expanded risks

Another front in the battle over Data Security and Privacy broke out this week when the United Arab Emirates (UAE) announced its intention to shut down mobile services over Blackberry smart phones made by Research in Motion (RIM). The UAE, concerned about security and looking for ways to intercept illegal and terrorist activity, threatened to shut down the popular email and text messaging services due to RIM’s practice of encrypting such communications. Other governments are seeking similar control and access over data.

Should RIM and other service providers agree to government access to data, however, they expose themselves to increased litigation from customers and third parties. Foreign government access to data may be misused for profit by rogue elements in governments. Data Security and Privacy insurers, in a nascent field, still have little way of quantifying such data risks. Nonetheless, insurance coverage for these types of risks to telecom and data providers is available with some limitations.

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