In 2017 we saw a significant amount of local growth in the uptake of cyber insurance.
Aon estimates the Australian market grew nearly 100 per cent compared to 2016. This growth is expected to continue for the next 2-3 years.
Over the past five years cyber premiums have grown significantly. It is estimated that by 2022 worldwide cyber premiums will exceed $7 billion, a compound annual growth rate of 15 per cent. We have also seen a noticeable move by companies to take out bespoke cyber coverage in light of ransomware attacks such as WannaCry and NotPetya. In addition to this, organisations are looking to protect their traditional lines of insurance from the impacts of a cyber event.
Australia now lives under a new data privacy regime since the introduction of the Notifiable Data Breaches (NDB) scheme on 22 February 2018. Under this new regime, it has become mandatory for various organisations and government agencies to notify individuals, and the Office of the Australian Information Commissioner (OAIC), of data breaches that are likely to result in serious harm.
- The cyber insurance market is maturing and penetration rates are improving in Australia
- Local cyber insurance market size is estimated to be approximately $60 million, with the global market estimates ranging between USD3 billion – $3.5 billion
- In 2018, Australia commenced what will go down in legal history as the year of global privacy legislation by implementing our new regulatory regime – the NDB scheme. This follows the global trend of expanding regulatory oversight concerning privacy. Additional legislation being enacted globally includes:
- Europe’s General Data Protection Regulation (GDPR) was implemented regulation in May
- Last two USA states (South Dakota and Alabama) implemented regulation in Q1
- California implemented the California Consumer Privacy Act 2018 in June which imposes restrictions on companies trading in information
- In November, Canada will implement the long awaited Personal Information Protection and Electronic Documentations Act
- Since the implementation of the NDB scheme on 22 February 2018, the OAIC has already been notified of 305 data breaches up to 30 June 2018.
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