Cyber cover ramps up in Australia and New Zealand

May 13 2019 by InsuranceAsia News Staff

Firms in Australia and New Zealand are increasing their cyber insurance cover.

According to the second annual Cyber Security Survey from accountancy firm BDO, 37% of companies now have some form of cyber liability insurance, up from just 28% last year.

Around half of those surveyed who purchased cover had a standalone specialist policy, with the rest arranging cyber cover as an add-on to an existing insurance policy.

While the majority of firms use a broker to arrange their cyber insurance, the researchers found, only 28% had undertaken a formal assessment process — internal or external — before buying cover.

The report states: “This lack of expertise and formal assessment approach could potentially leave organisations exposed in purchasing the wrong cyber insurance, which may not respond as expected in the event of a cyber-related incident.”

Cyber has long been seen as a growth area for insurance firms as the threats increase and awareness grows. The value of the global insurance cyber market is expected to grow to US$4.6 billion in gross written premiums in 2023.

Last year, Singapore launched the world’s first commercial cyber risk pool to bring together reinsurance and insurance-linked securities markets to provide US$1 billion of bespoke cyber coverage for companies in Asia.