Global cyber security leader Sophos has entered into a landmark partnership with Phishield, a specialist cyber insurance provider, to launch an integrated cyber protection and insurance solution across sub-Saharan Africa. The collaboration marks the first time in the region that proactive cyber defence and financial protection have been formally aligned, providing businesses with new tools to manage escalating ransomware threats.
The partnership links Sophos’ flagship managed detection and response (MDR) service with Phishield’s tailored cyber insurance products. Organisations deploying Sophos MDR will now qualify for preferential insurance rates, unlocking coverage of up to R100 million.
This comes at a time when ransomware and other cyber attacks are inflicting significant financial damage on South African businesses. According to the latest Sophos State of Ransomware in South Africa 2025 report, the median ransom demand has surged to R18 million, while the median payment nearly tripled year-on-year to R8.3 million. The average recovery cost, excluding ransom, now stands at R24 million.
“Cyber security is no longer a technology-only challenge,” said Pieter Nel, Sales Director SADC at Sophos South Africa. “Businesses need to address both the technical and financial consequences of ransomware. By integrating MDR with Phishield’s insurance offering, we give organisations a framework to defend against attacks and reduce the crippling cost of recovery when incidents occur.”
Why cyber insurance is becoming essential
Phishield, which specialises in underwriting and structuring cyber risk cover, said the partnership reflects growing demand for insurance solutions that are directly linked to an organisation’s security posture.
Sarel Lamprecht, Managing Director of Phishield, explained: “Cyber insurance has traditionally been reactive. With this partnership, we’re incentivising prevention. Companies investing in strong security controls through Sophos MDR will benefit directly from reduced premiums and broader coverage. It’s a shift from treating cyber security and insurance as separate silos, towards a unified approach to resilience.”
The Sophos-Phishield model also addresses one of the most pressing challenges facing African organisations: limited capacity to absorb the indirect costs of a cyber attack. Beyond ransom payments, businesses face downtime, lost productivity, regulatory scrutiny and reputational damage. By combining continuous detection and response with financial protection, the partnership offers a dual-layered safeguard.
Incentivising better cyber hygiene
The model rewards proactive behaviour by linking insurance eligibility to proven security measures. Companies deploying MDR gain access to discounted rates and structured cover, reducing exposure to catastrophic losses. Sophos’ MDR service operates 24/7, monitoring for advanced threats and deploying rapid response actions to neutralise incidents before they escalate.
For insurers, this reduces overall claim risk by encouraging adoption of robust defences. For businesses, it lowers the cost barrier to comprehensive insurance and ensures that when incidents do occur, recovery is financially viable.
Addressing regional challenges
Cyber attacks are not confined to large enterprises. SMEs, government agencies and service providers are increasingly targeted due to perceived weaknesses in defences. The Sophos report revealed that 71% of South African organisations that had data encrypted in ransomware attacks ended up paying the ransom, well above global averages.
“Criminals know that many local businesses lack resources for extended downtime,” said Nel. “This makes them more likely to pay. With MDR and cyber insurance in place, organisations can avoid those impossible choices and instead respond from a position of strength.”
Lamprecht added that regulatory compliance is also driving demand. “Boards are under pressure to demonstrate they have taken reasonable steps to mitigate cyber risk. Partnering security with insurance provides that assurance to shareholders, regulators and customers.”
Looking ahead
The companies said the partnership will be rolled out through Sophos’ established partner and distributor network in sub-Saharan Africa, supported by Phishield’s underwriting expertise. The initial focus will be on South Africa, with expansion to other regional markets in 2025.
“The threat landscape is evolving quickly, and so must our response,” Nel concluded. “This partnership offers a blueprint for how technology providers and insurers can work together to help businesses withstand ransomware and other high-impact threats.”
Phishield is underwritten by Bryte Insurance Company. A Fairfax company. Registration Number 1965/006764/06, a licensed insurer and authorised FSP (17703).
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