Internet & your Security

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The internet has been around now for twenty-five years and while the advantages may outweigh the risks, cyber security threats are increasing daily.

The United States have had some celebrated class actions including Sony and Target and the theft of some celebrities’ private photos.

However this is not confined to the USA. Australia has had their fair share. In 2011 and 2012,  2.95 million cyber attacks were detected.

In 2013 some 5 million Australians were affected at an estimated cost of $1.06 billion.

These types of losses are not covered by any of the traditional insurance policies normally taken out by most businesses but the loss of your customer’s credit card details, for example, could be catastrophic. The risk is becoming so common these days that businesses must start thinking of it in terms of other catastrophic occurrences such as fire and storm.

Hackers accounted for 30% of data loss while staff mistakes made up for 14%. More than half of Australian companies are unprepared for cyber attacks, and insurance is an important part of the solution, according to Ernst & Young (E&Y).

The professional services provider’s Global Information Security Survey found 80% of respondents believe they face an increased cyber threat, but 51% say their organisation would fail to detect a sophisticated attack.

For the first time in 17 years the survey shows external attackers are considered more of a threat than rogue insiders.

An article in Insurance News on 8/2/2015 reported that the average cost of a data breach in Australia is estimated at $2.5 million, and that will rise if Federal Parliament passes a bill to make notification mandatory.

Given there is no legislation for breach notification in Australia and that most organisations are focused on prevention as opposed to detection, there is significant under-reporting of cyber breaches in Australia.

Don’t be caught out without having suitable insurance protection in place.

Talk to your Account Manager at AIA for the latest advice on the insurance protections available.

Who needs cyber insurance? Unbranded from NIBATV on Vimeo.