Australian businesses expand cyber insurance uptake amid evolving threats

Coverage trends highlighted

Australian businesses expand cyber insurance uptake amid evolving threats

Cyber

By Roxanne Libatique

An increasing number of Australian businesses are adopting cyber insurance as part of their broader approach to risk management, according to recent survey findings from cybersecurity firm Arctic Wolf.

The research showed that 43% of organisations in the Australia and New Zealand (ANZ) region already have cyber insurance, while 57% are actively considering adding it to their risk strategies.

Of those currently insured, 61% have stand-alone cyber insurance policies, highlighting the growing preference for specialised coverage.

Arctic Wolf’s survey gathered insights from 102 business and security executives in Australia and New Zealand, all of whom represented companies with at least 50 employees. Most respondents worked for organisations with between 100 and 499 staff. The company also surveyed 112 insurance carriers and brokers in the US to compare trends between the regions.

Uptake and satisfaction 

Among ANZ organisations with cyber insurance, nearly 40% have maintained their policies for more than two years, while just 2% recently acquired coverage within the last three months.

However, confidence in the adequacy of their coverage remains moderate. Respondents rated their confidence level in their policies at an average of 6.8 out of 10.

One Australian participant pointed to coverage limitations as a key concern.

“The coverage of insurance is not comprehensive enough, and many risks that I am concerned about are not included,” they said, as reported by Cyber Daily.

Rising premiums and coverage trends

Premium costs are increasing, with 61% of ANZ organisations reporting that their policy prices have risen. However, for many, the increases have been relatively modest, with 44% noting a rise of 10% or less. These findings align with trends observed in the US, where 50% of insurers expect premiums to rise by no more than 10%, and 26% anticipate no price changes.

In terms of policy comprehensiveness, 50% of ANZ respondents reported improvements in their coverage over time, while 48% said it had remained the same. A small fraction, 2%, reported that their coverage had decreased.

New Zealand respondents, however, highlighted challenges in accessing policies that meet their needs.

One participant said: “There is a limited [number] of cyber insurance policies in our country, and so looking internationally, it’s been even that much more difficult because of the policies you hold in New Zealand and how they can occur with cyber insurance policies overseas as well as brokers overseas.”

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