With cyber crime becoming increasingly common, as exemplified by a series of recent high profile breaches, will cyber insurance help organisations manage this escalating risk? We unpack the key considerations.
Cyber crime is on the rise. According to the Australian Cyber Security Centre, between July 2021 and June 2022, they received a nearly 13% increase in the number of cyber crime reports since the previous year. This equates to an astonishing rate of one cyber attack report every seven minutes.
The severity of cyber security incidents is also increasing Most recently, there have been multiple well-reported large scale cyber attacks on large organisations. There has been a commensurate increase in the impact on victims. Between July 2021 and June 2022, there was an increase in financial losses due to ‘business email compromise’ attacks, to more than $98 million in total. The average cost to large businesses per cyber crime report is now over $62,000, representing an average increase of 14 per cent since the previous year.
Businesses at all levels and across all industry sectors should consider cyber insurance as a possible avenue to manage the risk posed by cyber attacks….
