Active insurance provider Coalition has entered the excess cyber insurance market in Australia.
This initiative allows local businesses to enhance their cyber insurance coverage with an additional layer of up to $20 million, provided over the primary insurance obtained from another cyber insurer.
Coalition’s new excess policies offer the possibility to include additional coverage for specific threats such as fund transfer fraud and social engineering through endorsements.
Customers who opt for any of Coalition’s Active Cyber Insurance policies also gain access to Coalition Control, a cyber risk management platform, and support from a specialised security team dedicated to resolving security concerns and alerts.
Sam Weaver, general manager for Coalition in Australia, highlighted the significance of the expansion.
“Building on the success of our primary launch, we’re thrilled that Coalition’s innovative Active Cyber Insurance offering for excess is available for brokers to start quoting now,” he said. “Our broad appetite for offering cyber coverage will enable more Australian businesses to acquire cyber insurance and be better protected from digital risks.”
Coalition has already introduced similar excess cyber insurance products in other markets, which launched in the US in 2018, Canada in 2020, and the UK in 2022. Australia is now the fourth global market to access these services.
Brokers who wish to offer these policies can reach out directly to Coalition’s underwriting team via email at [email protected]. For more details on Coalition’s Active Insurance offerings, interested parties can visit https://www.coalitioninc.com/au.
The launch of a new cyber insurance offering follows the publication of Coalition’s 2024 Cyber Claims Report, which shed light on key cyber threats and their implications for policyholders in 2023.
According to the report, 56% of all cyber claims in 2023 resulted from fund transfer fraud or business email compromise, a result which Coalition said emphasises the importance of robust email security measures.
The report also revealed heightened vulnerabilities related to certain network security devices. Additionally, it showed a 13% year-over-year increase in overall claims frequency and a 10% increase in overall claims severity, resulting in an average loss of $100,000. Businesses with revenues between $25 million and $100 million were affected, with a 32% surge in claims frequency.
