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Selling cyber insurance to SMEs: what brokers need to know
Small businesses are facing rising costs associated with cybercrime, but cyber insurance penetration remains low. This is how brokers can show value in an untapped market. The cost of cybercrime incidents for Australian businesses has risen 14 per cent year-on-year,...
08 Jan 2024
3 mins read
Small businesses are facing rising costs associated with cybercrime, but cyber insurance penetration remains low. This is how brokers can show value in an untapped market.
The cost of cybercrime incidents for Australian businesses has risen 14 per cent year-on-year, according to the Australian Signals Directorate’s Cyber Threat Report 2022–2023. Small businesses can expect to pay an average of $46,000 per incident, while medium businesses may face costs of around $97,200, according to the report.
Despite these rising numbers, just 20 per cent of small-to-medium enterprises (SMEs) have standalone cyber insurance, according to the Insurance Council of Australia.
“Cyber insurance [for SMEs] has huge potential for brokers,” says Sam Weaver, a former broker of 15 years who is now the general manager – Australia, for Coalition, a global cyber insurance provider.
“The most successful will be those who understand why it’s needed, exactly how it can help and why it isn’t a priority for so many SMEs.”
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