{"id":9499,"date":"2022-09-16T15:40:23","date_gmt":"2022-09-16T05:40:23","guid":{"rendered":"http:\/\/intelliworx.wpenginepowered.com\/au\/?p=9499"},"modified":"2025-04-07T04:20:37","modified_gmt":"2025-04-07T04:20:37","slug":"how-to-reduce-your-cyber-insurance-premium","status":"publish","type":"post","link":"https:\/\/intelliworx.co\/au\/blog\/how-to-reduce-your-cyber-insurance-premium\/","title":{"rendered":"How to reduce your cyber insurance premium"},"content":{"rendered":"

The cyber threat landscape in Australia continues to be a challenge for businesses, with more frequent and serious ransomware attacks and data security breaches. The rise in remote work arrangements over the last two years has created the perfect environment for cybercriminals to exploit vulnerabilities and attack organisations in every industry.\u00a0<\/span><\/p>\n

The Australian Cyber Security Centre<\/a> regularly warns organisations about protecting themselves from the ever-increasing risks of cyber threats, and as a result, many companies are choosing to take up cyber insurance as a means to reduce their risk. However, due to the increased number of claims occurring over the last few years, the cyber insurance market has rapidly evolved, with insurance companies increasing premiums and requiring additional information for underwriting.\u00a0<\/span><\/p>\n

Businesses that take a proactive approach to cybersecurity by deploying ongoing risk assessment and management, while investing in robust cybersecurity protocols and measures will be best placed to reduce their cyber insurance premiums while maintaining the most appropriate coverage.\u00a0<\/span><\/p>\n

Why are cyber insurance premiums rising?<\/span><\/h2>\n

Since the beginning of the COVID-19 pandemic, there has been a significant uptick in the frequency and severity of cybercrime. As businesses and employees were forced to shift to remote work, more people were online and vulnerable to ransomware and phishing attacks. Small businesses without the same protection as larger corporations are particularly vulnerable and can ill-afford the<\/span> average cost of a data breach<\/span><\/a> of AU$3.35 million.\u00a0<\/span><\/p>\n

As a result of increased cyber-attacks, insurers have seen higher cyber insurance claim rates, with unsustainable financial returns. The heightened risk for policyholders has forced insurance providers to evaluate their business models and be more careful about who they insure, which has in turn pushed insurance premiums upwards.<\/span> In the first half of 2021<\/span><\/a>, cyber insurance premiums in Australia increased by 80%, with claim numbers also increased by 50%.\u00a0<\/span><\/p>\n

It has never been more vital for you to protect your business to prevent financial loss and business interruption. Preventive measures are the best approach to cybersecurity, by investing in risk management and robust cybersecurity tools, which in turn can lower the price of your cyber insurance premium.\u00a0<\/span><\/p>\n

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Ways to reduce your cyber insurance premium<\/span><\/h3>\n

To ensure your business data is always secure and to reduce your cyber insurance premiums, always ensure the following security practices and solutions are in place:<\/span><\/p>\n