Australians are more dependent than ever on technology and cyber risk cost the Australian economy $33 billion last financial year.
This Green Paper, written by actuaries Win-Li Toh and Ross Simmonds, and technology expert Michael Neary, notes while the first line of defence against cyber risk will always be good cyber hygiene and security, cyber insurance is an important second line of defence.
There are gaps, however, in achieving the best practice ideal, especially a severe skills shortage, limited understanding among Boards of the role of cyber insurance, limited education among SMEs of cyber risks, and capacity and profitability challenges in the market including for accumulation risks.
This Green Paper offers several solutions-focused discussion points, as we examine the complementary roles of government, business and insurers in creating a robust best-practice framework, where cyber insurance can thrive and offer better protection against cyber risk.