Credit: Mykyta Dolmatov | Dreamstime.com
What is Cyber Insurance?
Cyber insurance is designed to help an organisation or individual mitigate the risk of a cyber-related security breach by offsetting the costs involved with recovery.
The Australian government released a report in 2015 that stated that the average cost for a cyber attack was $276,323. The report also found that 33% of businesses in Australia experienced cyber crime in 2014, and that 53% of the total cost is spent on detection and recovery.
With its roots in Error and Omissions insurance, cyber insurance caught on in 2005, with the total value of its premiums forecasted to reach $7.5 billion by 2020.
Is it just for businesses?
Originally, cyber insurance was tailored to the corporate world, providing cover against the kinds of attacks faced by retailers such as David Jones, Kmart, Amazon and many others.
However, Insurance companies such as AIG in Australia, Hiscox in the UK and the US, and Hartford Steam Boiler in Munich have been rolling out policies aimed at individuals.
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