As we navigate the changing insurance landscape, emphasising the importance of robust cyber security measures is crucial for success.
This blog talks about how cyber security and insurance need to work together in protecting your small business. It covers important trends forming within the Australian Cyber Security Insurance arena and stresses the need to use basic business protections to keep up with the always-changing digital world.
The Surge in Cyber Attacks
The last twelve months have witnessed a significant surge in cyber attacks globally, and Australia was no exception.
Ransomware attacks, data breaches, and other cyber threats became more sophisticated, targeting businesses across various sectors.
"Each Cyber Crime costs a small business an average of $40K with the number of attacks leaping 13% on last year to the equivalent of one attack every 7minutes....." Australian Cyber Security Centre (ACSC), 2022
This escalating threat landscape has played a pivotal role in driving the adoption of cyber insurance as a risk mitigation strategy.
The Evolution of Cyber Insurance Policies
Cyber insurance policies in Australia have evolved to address the changing nature of cyber threats.
Insurance providers are offering comprehensive coverage for a range of cyber risks, including financial losses due to cyber incidents, costs associated with data breaches, and expenses related to business interruption. This coverage, however, is accompanied by a higher cost.
It is essential for businesses to recognise that in order to qualify for such insurance, they must maintain specific safeguards such as Multi-Factor Authentication, Endpoint Detection & Response, Cyber Awareness Training, and Backups, among other measures, to bolster their cyber security.
The aforementioned items represent the latest 'must-haves,' but the ongoing list of demands is continually expanding. This is in response to the imperative to remain risk-averse and proactively mitigate potential risks, given the evolving landscape of cyber crime. These emerging requests are things like Essential 8, Mobile Device Management, Vulnerability Scanning, Penetration Testing and SIEM/SOC.
These types of insurance policies have become a crucial component of a business's risk management strategy and will become more prevalent as an insurance base requirement moving forward.
In light of the increasing need for cyber insurance, insurers are enforcing rigorous security prerequisites for policyholders. Businesses pursuing coverage are now obligated to establish strong cyber security measures as a fundamental requirement.
Such prerequisites are typically encompassing routine security audits, penetration testing, and the adoption of sophisticated cyber security solutions, ensuring a proactive defence against potential threats.
Cyber Resilient Culture
Cyber insurance not only provides financial protection but also serves as a catalyst for a broader cultural shift. Organisations are recognising cyber security as a business imperative, prompting investments in technologies, training programs, and incident response plans.
This is where those organisations that are having the conversations and are building best practice around cyber security into their teams every day behaviours, are setting themselves up with a strong and healthy security posture.
As we navigate this ever changing digital landscape, the symbiotic relationship between cyber security and insurance will continue to shape the resilience of Australian businesses to threats. The landscape is not just about mitigating risks, it's about fostering a proactive cyber security culture that permeates every facet of an organisation.
With cyber insurance driving security requirements, businesses are poised to defend against the evolving threat landscape, ensuring a secure and prosperous digital future.
How Can Diamond IT Help
From providing analysis resources to help with the insurer questionnaires through to facilitating the development of roadmaps and strategies to improve your cyber security requirements.
Contact us at 1300 307 907 today.