Cybersecurity: Are You Really Covered? The Hidden Gap in Business Protection

Cyberattacks on businesses are no longer rare—they’re happening all the time. In just one year, authorities recorded over 76,000 reported digital crimes, which means a cyberattack happens roughly every eight minutes. That’s not just a headline number. It’s a reality that’s shaking up how companies run their operations and how they manage money. In 2021 alone, the cost to Australia’s economy from cyber incidents was estimated at $42 billion. Yet most businesses still aren’t taking it seriously. Many haven’t thought through what a breach would actually mean—how long it would take to fix, how much it would cost, or how it might damage their reputation. Without that clarity, they’re left guessing. And that guesswork is exactly what makes them so vulnerable.

A lot of Australian companies don’t have cyber insurance at all—about 75% of them. That’s a huge gap, especially when the global cyber insurance market is now worth around $9 billion. But even with that growth, adoption hasn’t picked up. Why? Insurers struggle to price risk because cyber crime is new and hasn’t built up a solid history of losses. They often use models from older insurance areas—like property or auto—where the risks are more predictable. That doesn’t work for cyber threats, which are fast, complex, and vary wildly from one incident to the next. Premiums have shot up, with increases over 80% in Australia between 2020 and 2021. That makes coverage feel out of reach for many. And on top of that, companies rarely share details about real attacks—because they’re afraid of being blamed or targeted again. Without that data, insurers can’t build accurate risk models. The result? Prices stay high, and coverage stays out of reach.

Why Cyber Insurance Falls Short—and What to Do Instead

• 75% of Australian businesses have no cyber insurance: This means most are unprepared for the financial fallout of a breach, leaving them exposed to real-world damage.
• Pricing models are outdated and unreliable: Insurers rely on old benchmarks from other sectors, which don’t reflect how cyber threats actually behave—making premiums feel inflated and unaffordable.
• Lack of real incident data slows risk assessment: Companies won’t share details about breaches for fear of backlash or further attacks, which keeps insurers guessing and hinders fair pricing.
• Insurance isn’t a substitute for strong security: Even with coverage, businesses must act—by limiting data storage, locking down access, patching software, and training staff.

No amount of insurance can replace good security habits. The real defense starts with action—not just buying a policy. Businesses need to stop treating cyber risk as something that happens to others and start treating it as a daily challenge. When you protect your data, your systems, and your people, you’re not just avoiding a breach—you’re building resilience. And that’s what keeps a business alive in a world where attacks are no longer a distant threat.