Some Australian partners are encountering difficulties in selecting appropriate cyber insurance policies and grasping the risks of lacking adequate coverage.
Partners and resellers are having trouble evaluating their risk profiles, which leaves them exposed to potential cyber threats or facing inflated premiums.
Although cyber insurance has been available for a decade, it remains an emerging sector, with only 20% of SMEs in Australia currently possessing standalone cyber insurance, as reported by the Insurance Council of Australia.
To gain insights into the risks and opportunities surrounding cyber insurance for partners, CRN Australia spoke with various cyber insurance providers, partners, and vendors.
Peter Birbeck, CEO of Acclario IT— a Microsoft systems integrator—has recognized cyber insurance as an essential aspect of his company’s risk management strategy over the past five years. However, he has pointed out several challenges in acquiring such insurance.
Birbeck explained that insurers have stringent underwriting requirements, necessitating a comprehensive review of a partner’s past incidents and the adoption of specific security practices. He also noted that having certifications like ISO27001 can lower premium costs.
There is a growing recognition of the importance of cyber insurance among managed service providers (MSPs) and managed security service providers (MSSPs). Aegis Cybersecurity consultant Luke Irwin emphasized that MSPs are increasingly becoming targets due to their access to client systems, making insurance essential for tackling litigation challenges and maintaining operational continuity in case of incidents.
