Risk awareness takes centre stage as IT security and breach response resilience are prioritised

Business Insurance Market Conditions and Risk Dynamics H2 2023

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The cyber insurance sector has experienced a notable shift characterised by stabilisation and, in some cases, reduction of premium rates where robust cyber risk management is being practiced and can be demonstrated.

There is now an expectation that businesses must treat IT security as a top priority. Government regulation is now sharply focused on Australia's cyber security risks, emphasising cyber awareness education, and a deeper understanding of risks and insurance implications. And insurers need to know that a business has absolute understanding of its risk, has appropriate plans in place to respond to an attack and has a strategy to recover from an attack.

In our Business Insurance Market Conditions and Risk Dynamics H2 2023 report, we provide insights into the current market and risk factors and how these are influencing cyber insurance, including:

  • The cyber insurancemarket is now increasingly mature, attracting more insurers.
  • It is essential to demonstrate cyberattack preparedness, including response protocols and proactive defence and recovery tactics.
  • Previously looking at the cyber security of the business perimeter, insurer focus now extends to identity access management, privileged access management and supply chain vulnerabilities of business infrastructure.
  • Company boards are now alert to cyber risk, and a cyber-specific risk management framework is high on the agenda, particularly given the evolving regulatory environment.
  • The implementation of the Australian Cyber Security Strategy demonstrates the government's commitment to rolling out world-class cyber best practices.

Other topics in the report include:

  • Claims — supply shortages and significant weather events drive up claims inflation rate
  • D&O — negotiable premiums provide a more favourable market for companies seeking D&O
  • Property — increased rates and variable capacity are becoming the new norm
  • Workplace risks — regulators consider tightening measures as the trend towards workers' long-term claims rises
  • Marine & cargo — regulatory scrutiny of business ESG credentials to increase
  • Energy & renewables — insurer appetite is growing in a period of transition

For more insights on the state of the business insurance market in Australia and risk dynamics, download our full report.

Looking for business risk and insurance advice?

During this time of change you can turn to our Gallagher experts for advice and guidance. We are here for you and will do everything we can to help you face the future with confidence.

Please access your copy of the Business Insurance Market Conditions and Risk Dynamics H2 2023.

Business Insurance Market Conditions and Risk Dynamics H2 2023

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Disclaimer

Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient's industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers' control.

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