Sydney-based Hutch Underwriting has launched a new residential strata insurance policy, which it says offers body corporates protection from cybercrime for the first time.

The policy protects body corporates that lose funds to cyber fraud and associated costs, as well as offering property and liability cover.

Hutch was founded a year ago by CEO Robin Johnson, who was formerly local CEO at Axa XL for five years until May 2020, and Chief Underwriting Officer Dominique Vagi. It was accepted as a Lloyd’s of London coverholder in August.

Hutch deals exclusively via brokers via the Sunrise Exchange. Its policies are available under product code HUTSTR.

“We’ve designed our innovative new residential strata policy for the exposures of today, including cyber cover for loss of funds as a result of cybercrime and defence costs for liability claims resulting from a cyber breach,” Mr Johnson said.

“Stratas are unfortunately in that small and micro-segment that lost the most money to scams last year,” he said, noting the Australian Cyber Security Centre estimates cybercrime costs Australia $33 billion annually.

Strata Underwriting Manager Melodi Emadi, who joined last Hutch month and formerly held positions at Longitude Insurance and Hollard, says it is the only strata product on the Sunrise Exchange and that Hutch is “the first to market with a cyber offering for residential strata”.

Mr Johnson founded CoverRadar on his departure from Axa XL, an online strata insurance offer, and says Hutch Underwriting is “CoverRadar's digital MGA.” Hutch also has a construction practice targeting small to medium contractors.