Cyber insurance premiums soar 80% as claims surge
Cyber insurance premiums have soared in the past year as claims surged in response to a rise in damaging attacks by hackers. The cost of taking out cyber cover had doubled on average every year for the past three years, said global insurance broker Marsh. Honan Group, another broker, pointed to an 80 percent rise in premiums in the past 12 months, following a 20 percent increase in the cost of cover in each of the previous two years.
Higher risk for larger companies.
A small or medium-sized business wanting to buy $10 million of cover would, on average, face a $60,000 premium, up from $33,000 a year ago, Honan said. The cost of cover is even higher for larger companies because they are considered a greater overall risk.
A large company wanting to purchase $20 million of cover would pay about $350,000, up from $194,000 a year ago, Honan said. Victims of cyberattacks in the past two years include logistics firm Toll Holdings, which in 2020 suffered two attacks, including one crippling attack from Russian-based hackers in January that year. In March last year, Nine Entertainment, publisher of The Australian Financial Review, was attacked by hackers. Around the same time, Taylors Wines was subjected to a cyberattack that temporarily froze an ordering system and crashed the winemaker’s email.
David Tudehope, chief executive of Macquarie Telecom Group, said companies should look at a series of security guidelines published by the ACSC, known as the Essential 8, to ensure their network systems were as secure as possible and support their efforts to buy insurance.
This article was originally published in The Australian Financial Review by author Sally Patten. Click here to view.