Optus and Medibank have copped huge data hacks recently, and as a result, premiums for cyber insurance in Australia have more than doubled since 2020.
👉 Background: We know that big Aussie companies like Optus and Medibank have copped huge data hacks recently. And these hacks have highlighted the threat posed by hackers.
👉 What happened: As a result, Aussie investment bank Macquarie found that premiums for cyber insurance in Australia have more than doubled since 2020 to $480 million this year.
👉 What else: Interestingly, Macquarie predicted this figure would jump to $815 million in 2024. And when companies suffered a cyberattack, the biggest costs are actually the legal and consulting expenses to rebuild technology (rather than fines and ransoms).
💡In the past, data has been positively referred to as the new oil. But now, some experts are calling data ‘the new coal’.
💡 Once upon a time, coal was considered one of the most valued assets on a mining company’s balance sheet…but given the environmental impacts these days, it's often considered a bit of a liability.
💡According to Macquarie, 68% of ASX 200 companies have bought cyber insurance, so while today, cyber insurance is a relatively small market compared to other types of insurance, it is expanding rapidly.
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