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.