CYBER INSURANCE IS GROWING IN AUSTRALIA
AUSTRALIAN CYBER SECURITY CENTER HIGHLIGHTS THE RISE OF CYBER ATTACKS IN THE COUNTRY
A growing number of companies in Australia are beginning to find solace in cyber insurance protection. According to the Australian Cyber Security Center, the country’s digital networks are experiencing an increase in sophisticated attacks in both the public and private sectors. As such, cyber insurance has become a more important priority for companies that have a significant presence in the digital space. While insurance protection is becoming more coveted, it may not be able to address all the risks that companies face.
CYBER INSURANCE IS BECOMING AN IMPORTANT RESOURCE, BUT AWARENESS OF DIGITAL RISKS IS SOMEWHAT LOW
The Australian Cyber Security Center notes that cyber attacks are coming from a wide range of sources. Individuals, politically motivated organizations, criminal syndicates, and intelligence agencies from other countries are all contributing to these risks. The organization notes that there is a significant gap in understanding the risks that exist in the digital world. Ensuring that companies understand these risks is a significant challenge, and the Australian Cyber Security Center has been partnering with other organizations to help businesses understand the risks they face.
BUSINESSES MAY BE ABLE TO NEGOTIATE WITH INSURERS ON CYBER PROTECTION
The cyber insurance market in Australia is growing quickly, with financial service companies, utilities, and telecommunications organizations seeking out protection against digital attacks. K&L Gates, an international law firm, notes that businesses should not simply try to pin cyber insurance coverage on to existing professional indemnity. Insurers are more willing to negotiate the provisions of cyber protection, as they are very interested in entering into the cyber insurance market.
GOVERNMENT POLICIES COULD HELP SHED LIGHT ON THE INTRICACIES OF CYBER ATTACKS
Cyber attacks are becoming more sophisticated, and businesses that are not acclimated to digital risks. Government policies may be able to aid in this problem, however. New breach notification laws, which require companies to provide information concerning cyber attacks, can mean higher compliance costs for businesses, but they can also shed more light on cyber risks and how companies can better protect themselves from attacks.