Cyber Insurance Becomes Essential Amid Rising Digital Threats
Cyber Insurance Becomes Essential Amid Rising Digital Threats
0
The recent cyberattack on Fortnum Private Wealth, accompanied by ASIC's legal action, has spotlighted the critical risks cyber threats pose to financial advice companies in Australia.
With digital integration intensifying across the finance sector, the owner of Fortnum, Entireti, plans to defend the case, underscoring the necessity for ongoing vigilance in cybersecurity measures.
Fraser Jack from Cyber Collective emphasises that cyber insurance has become indispensable for businesses. With regulatory requirements mandating recovery capabilities post-cyber incidents, advice practices face expenses they often cannot anticipate or manage without insurance. Cyber events can incur hefty legal bills, demanding extensive forensic IT and accounting work, not to mention significant financial losses caused by deceptive acts such as misdirected transactions or errors involving super fund rollovers.
The average cyber intruder remains undetected in a system for over 200 days, making timely insurance coverage crucial to subsidising response and recovery efforts after an attack is identified. However, Jack advises that while insurance offers vital protection, it should not be the sole defence mechanism. Businesses need a comprehensive approach starting with robust internal controls, adherence to compliance protocols, and extensive training to diminish human error risks, which are responsible for nearly all breaches.
Financial adviser Jenny Brown of JBS Financial Strategists stresses the importance of cyber protection, lamenting the hefty repercussions on reputation and finances should a breach occur. For her, spending a modest insurance premium is a prudent measure given the extensive use of online tools and the potential for significant repercussions without it. Brown highlights the need to review what cyber policies cover, especially in conjunction with management liability and professional indemnity insurance, to ensure no areas are left unprotected.
The necessity for robust cybersecurity strategies was amplified for JBS Financial Strategists during Melbourne's COVID-19 lockdowns as the firm transitioned to 100% remote work. The firm's reliance on technology and the internet required rigorous security protocols, including monthly staff training and stringent system access restrictions, to safeguard against phishing scams and other vulnerabilities.
Brown underscores that while measures like cyber insurance and ongoing training offer a level of security comfort, complacency is dangerous. Regular practice and awareness-building among employees bolster protection for the business and its clientele against inevitable cyber threats.
Businesses must take proactive steps now. Fortifying cyber defences through insurance, stringent controls, compliance diligence, and continuous staff education can curtail potential damages and safeguard against emerging cyber threats in this increasingly digital world.
The recent cyberattack on Fortnum Private Wealth, accompanied by ASIC's legal action, has spotlighted the critical risks cyber threats pose to financial advice companies in Australia. With digital integration intensifying across the finance sector, the owner of Fortnum, Entireti, plans to defend the case, underscoring the necessity for ongoing vigilance in cybersecurity measures. - read more
In a comprehensive analysis, Swiss Re Institute predicts that global property and casualty insurance premiums will rise in tandem with GDP over the upcoming decade. This growth is driven by amplified natural catastrophe losses, asset accumulation, and heightened economic and litigation claims inflation. The institute's report outlines the evolving insurance landscape amid increasing global risks. - read more
In response to the devastating floods that swept across New South Wales' Mid North Coast in May, the Insurance Council of Australia (ICA) is taking proactive steps to support the affected residents. Insurers, organised by the ICA, will be meeting with flood victims in Kempsey, Taree, and Port Macquarie to provide guidance and support as they navigate their insurance claims. - read more
Public liability insurance is designed to protect businesses and tradespeople against legal costs and compensation claims for injury or damage to property by a third party. In layman's terms, it covers you if someone sues your business for damages. - read more
Insurance is a crucial aspect of business for tradespeople. Whether you are a sole trader or run a small trades business, having the right insurance coverage protects you from unexpected financial burdens. - read more
Running a small trade business in Australia involves various risks, from accidental property damage to unexpected injuries on the job. These unforeseen events can lead to significant financial losses, which might be challenging for smaller enterprises to absorb. That's where comprehensive insurance comes into play. - read more
Dictionary
Incontestability Clause
noun
A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.
