Sportscover Australia (Sportscover), a major insurer in the sports and leisure sector, has partnered with global specialist Beazley to introduce a new Cyber Breach Response (CBR) insurance product.
The launch comes amid rising concerns about cyberattacks in Australia, which are affecting a growing number of businesses, including those in the sports and leisure industries.
According to data from the Australian Cyber Security Centre (ACSC), reports of cybercrime surged to around 94,000 incidents during the 2023 financial year, compared to 76,000 the previous year.
These attacks are also becoming more costly for Australian businesses. The average cost of cybercrime incidents increased by 14% during this period, with large companies facing an average loss of $71,600 per breach, mid-sized firms $97,200, and small businesses $46,000.
In the first half of 2024, data breaches in Australia reached their highest level in more than three years, according to the latest report from the Office of the Australian Information Commissioner (OAIC).
The report noted 527 data breaches in the first half of the year, representing a 9% increase over the previous six months. This marks the highest number of reported breaches since late 2020.
The OAIC report identified cyberattacks as the leading cause of data breaches, accounting for 67% of incidents. The health and government sectors were the most affected, with the health sector alone accounting for 19% of breaches.
In response to these trends, Sportscover aims to help safeguard sports and leisure organisations in Australia by offering insurance solutions tailored to manage the risks associated with cyber incidents.
Commenting on the new offering, Chris Nash, managing director of Sportscover Australia, noted that cyber risks have become a pressing issue for all industries, including sports and leisure.
“Australia’s sporting and leisure sector is no different than any other when it comes to the dangers posed by cybercrime, which are unfortunately now an everyday risk faced by organisations globally,” he said.
He said CBR – available since Sept. 9, 2024 – is designed to provide a comprehensive insurance solution, covering data protection and security threats.
Stressing the importance of protection, Nash said cyber incidents can have significant financial and reputational consequences for sports clubs and leisure businesses, so the company’s goal is to provide a solution to mitigate these risks.
“We anticipate CBR to ‘change the game’ for all sports clubs and leisure businesses who are at risk of their personal data being compromised, not only to protect them financially, but also from the legal, and reputational damage that comes with any type of data breach,” he said.
