Australian companies’ spending on cyber insurance could surge by 70 per cent to more than $800 million in the next two years, as businesses seek protection against hackers and governments impose tougher penalties for data breaches.
The damaging cyberattacks on Optus and Medibank Private have underlined the financial threat posed by hackers, and Macquarie research highlights the growth in what businesses are spending on insurance against this risk.
A survey by Macquarie analysts found 68 per cent of ASX200 companies had purchased cyber insurance.Credit:Silas Stein/Getty Images
The investment bank’s analysts estimated gross written premiums for cyber insurance in Australia had more than doubled since 2020 to $480 million this year, and they predicted this figure would jump to $815 million in 2024.
While cyber insurance is still a relatively small market compared with other types of cover, it is expanding quickly as premium rates surge, with the analysts saying demand for cyber protection had exceeded supply from insurers.
The analysts said 68 per cent of ASX 200 companies bought cyber insurance and this figure was likely to climb after the Optus and Medibank attacks, while…
