Specialist insurance provider CFC has launched a new guide to help Australian brokers better understand cyber risks and the benefits of taking out cyber insurance.
The guide teaches brokers how to articulate how cyber products work and have more informed discussions with their clients about why cyber insurance is essential for businesses. It also includes case studies of real-life cyberattacks.
Moreover, the guide delves into the cyber insurance market's shift to a more technically-led and service-oriented solution to prevent cyber incidents from occurring and help clients quickly respond to cyberattacks.
“Compared to some other countries, fewer businesses in Australia have cyber coverage against mounting numbers of attacks. In fact, we estimate that less than 5% of Australian businesses purchase a dedicated cyber insurance product,” said Lindsey Nelson, cyber development leader at CFC. “This is an alarmingly low figure, given that cyber is their largest exposure, and while cyberattacks across the world have generally been going down in recent years, even taking into account the war in Ukraine, Australia is bucking the trend. According to our own data, attacks are still on the up.
“The threat landscape has changed drastically. Gone are the days when cyber exposure was understood to be a ‘big company’ issue, and cybercriminals have shifted from small-scale scams to large-scale extortion. Businesses are being targeted because they're vulnerable rather than valuable. Cyber insurance has never been more relevant for small businesses in Australia.”
As part of its commitment to cyber resilience, CFC will launch market-first, encrypted cyber insurance policies.
The feature provides an additional layer of security for insureds and is another essential step in keeping businesses safe from cyber threats. It will enable insureds to access their policy via a password or decryption key on the company's award-winning mobile app. Meanwhile, brokers will receive the policy decryption key via email when the policy is bound.
