With ransomware costs climbing steeply across South Africa, Sophos and Phishield have announced a partnership designed to give businesses both stronger defences and a financial safety net. The collaboration is the first in sub-Saharan Africa formally to integrate advanced threat detection with cyber insurance.

The move comes against the backdrop of Sophos’ State of Ransomware in South Africa 2025 report, which paints a stark picture of the local threat environment. The median ransom demand is now R18-million, up from R2.8-million last year. The median ransom paid rose to R8.3-million, nearly tripling year on year, while the average recovery cost reached R24-million.

“These numbers show that ransomware is a mainstream business risk,” said Pieter Nel, sales director for SADC at Sophos South Africa. “Sophos’ managed detection and response (MDR) service is already helping organisations stop attacks earlier, but the financial fallout when incidents do occur can be severe. By partnering with Phishield, we’re bridging that gap between prevention and recovery.”

Preferential insurance linked to security posture

Under the agreement, organisations using Sophos MDR will qualify for preferential cyber insurance terms through Phishield, with cover of up to R100-million available. This provides a strong incentive for companies to invest in proactive defences while ensuring they have financial resilience in place if ransomware strikes.

Sarel Lamprecht, MD of Phishield, said: “The reality is that human error, compromised credentials and overlooked vulnerabilities remain common causes of breaches. No solution can reduce risk to zero. Our model ties insurance directly to security maturity, so businesses that take prevention seriously are rewarded with lower premiums and broader cover.”

The offering also responds to a growing insurance industry concern: underwriting cyber risk has become increasingly complex as claims rise in frequency and severity. By tying cover to MDR adoption, the partnership seeks to make risk more predictable and manageable for both insurers and businesses.

The regional context

The Sophos report found that 60% of South African attacks resulted in data encryption, with 39% also involving data theft. Alarmingly, 71% of organisations with encrypted data ended up paying the ransom, highlighting the pressure on companies to restore operations quickly.

Nel noted that these dynamics apply equally in neighbouring markets. “Ransomware actors do not respect borders. Zimbabwe, Botswana and Namibia are all are seeing similar patterns of attack. Businesses across the region need to prepare for the same threat profile we see in South Africa.”

Pieter Nel Sophos — Pieter Nel, sales director for SADC at Sophos South Africa

Strategic significance

For Sophos, the partnership strengthens its value proposition in sub-Saharan Africa, where it has an established partner and distributor network. For Phishield, it demonstrates the role insurers can play in driving better security adoption while protecting businesses from financial collapse after an attack.

“This is not about selling more products,” Lamprecht stressed. “It’s about creating a sustainable model where security vendors and insurers work hand in hand. The better protected a business is, the better the insurance outcome – and vice versa.”

Building resilience

The companies emphasised that prevention, protection and planning remain essential. MDR provides continuous monitoring and rapid incident response, while cyber insurance adds a financial cushion. Together, the model seeks to reduce both the likelihood and the impact of a ransomware attack.

“The partnership is designed to give leadership teams confidence,” Nel concluded. “Cyber risk will remain, but with the right controls in place, businesses can make better decisions under pressure and recover faster if they are targeted.”

Phishield is underwritten by Bryte Insurance Company Limited, a Fairfax company, registration no 1965/006764/06, a licensed insurer and authorised FSP (17703).