As modern technology rapidly improves, Australian businesses are gaining the capability to work more efficiently than ever before. Cloud computing has made it easier for professionals to share information, and mobile devices have helped them communicate and collaborate from anywhere at any time. These are undeniably good things on balance, but it can't be denied – they also present serious risks.
The rise of cybercrime has been a serious issue for companies in Australia in recent years.
The rise of cybercrime has been a serious issue for companies in Australia in recent years. As hackers have found ways to pilfer information and disrupt business operations, CEOs and CIOs have had to think critically about how they can protect themselves. This partially means safeguarding their data so outside agents can't access it; it also entails setting up financial measures to soften the blow when hackers do get through.
A decade ago, "cyberinsurance" was an unheard of concept. Now, it's rapidly becoming a mainstream business strategy.
Demand for cyber coverage is clearly rising
While it's slowly becoming apparent that cyberinsurance is a necessity in today's business environment, you'd be right to put the emphasis on slowly. According to Computer Weekly, there's been a reluctance on the part of many business leaders to embrace cyber, and as a result, the number of organisations in Australia that have coverage has been estimated at anywhere between 3% and 14%.
Some recent news developments have begun to move the needle, however. Several major corporations were recently victimised by large-scale attacks, including the bank NAB, which compromised the personal details of over 60,000 customers.
Business leaders have realised that if attacks like this can happen to the big guys, they can happen to anyone. As a result, that small percentage of companies with cyber coverage is beginning to inch upwards. People are realising that it's time to take a closer look at their budgets and make the necessary space for cyber insurance.
Increasing awareness of the risk landscape
Not only are cyberattacks growing in terms of sheer number, but in addition, executives are realising that when attacks do happen, they can be devastating to their businesses financially. ABC News reported that in some cases, large corporations have suffered losses in the hundreds of thousands, largely due to the interruption in productivity that a cyberattack can cause.
Roger Smith of Allianz told the news outlet that it's difficult to protect against all possible instances of cybercrime because the list of threats can be so wide-ranging.
"The players are quite diverse," Mr Smith said. "They range from hostile governments through to organised crime, activists and even down to 15-year-old boys in their bedroom with their laptops. Their motivations can be quite broad as well, from seeking financial gains to drawing attention to a specific cause."
Since it's not possible to deter every possible cybercriminal, companies have come to realise that taking reactive financial measures is the best they can do. This explains the rise in executives exploring their options with regards to finance and insurance.
Premium funding to drive the insurance business
As cyberthreats grow in number and scope, the insurance industry will need to expand with it to meet the latest changes in demand. Fortunately, there are premium funding solutions available to help companies adjust in today's frantic marketplace.
At Attvest Finance, we work closely with insurance brokers to figure out the needs their clients and help them finance their insurance. We have a range of funding options available for large and small companies alike.
