While average cyber premiums are decreasing, cyber claims data reveal that Australian small businesses are particularly susceptible to email scams.
As the use of artificial intelligence (AI) technology continues to grow in the ever-evolving digital world, it is also increasingly being used in cyber-attacks on small businesses. The modus operandi of scammers is often impersonation generated through AI. Impersonation scams accounted for more than 70% of the 234,672 reports to Scamwatch between January 1 and September 30, 2023.¹ As the use of AI becomes more prevalent, it’s more important than ever to protect your business and improve its cyber resilience.
Cyber insurance can help protect your business against loss or theft of financial data, client records or personal information, or your own banking details. Cyber insurance can be a lifeline in the event of a breach or cyber-attack, which are often unexpected and can cause major business disruption or damage to your reputation.
If you currently hold or are considering purchasing cyber insurance to offset the increasing threat from AI scams and other cyber-attacks, this insurance market update is relevant to you.
Every year in Marsh’s Australian Mid-Year Insurance Market Update report, we highlight the latest trends in a wide range of insurance types.
What is influencing cyber premiums and what are the latest cyber claim trends in Australia?
Throughout 2024, there has been an uplift in the overall cyber security and awareness of Australian businesses. This, combined with increasing competition among insurers, has resulted in general cyber insurance premiums decreasing.
- Insurance premium reductions: Average cyber premium rates decreased by 0-10% in the first half of 2024 – a contrast compared to the increases seen in the same period last year.
- Insurer focus: Insurers are shifting their focus away from revenue and industry type, and more towards the internal controls of a business.
- Claims trend: Claims frequency in Australia has been climbing over the last 11 years, with ransomware events continuing to dominate.
- SMEs: Australian small-to-medium businesses have been particularly impacted by business email compromise and social engineering fraud.
Watch the video below to hear Kristine Salgado, Cyber Broker Leader at Marsh discuss key highlights and trends from the Australian cyber insurance market.
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Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238 983) (“Marsh”) and Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (“MAI”) arrange the general insurance (i.e. not the Discretionary Trust Arrangement) and are not the insurer.
Discretionary Trust Arrangements are issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417 964) (“JGS”). Any advice or dealing in relation to a Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). The cover provided by a Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.
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