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