IAG’s new Cylo underwriting agency will offer cyber insurance for businesses with annual revenue up to $10 million via CGU-affiliated brokers.

The insurer partnered with claims manager Crawford & Company and US-based UpGuard to create “Cylo backed by CGU”, which it says provides a unique offering of cybersecurity measures embedded within a policy.

CGU and WFI CEO Jarrod Hill says businesses are “deeply anxious” about cyberattacks and their potential exposure, yet research indicates only about one-fifth of Australian SMEs have standalone cyber cover.

“We set out to develop a best-in-class cyber insurance product to protect the small business segment,” he said. “Cylo backed by CGU is a comprehensive risk-informed underwriting proposition that sees us partner with world-leading cyber experts.”

Crawford & Company will oversee 24/7 incident response, cybersecurity intelligence and end-to-end claims management. Its Australia president Jonathan Hubbard says cyber protection has become a “must-have purchase” for businesses of all sizes.

“If the worst happens, it’s of paramount importance to have comprehensive, expert cyber incident response help on speed dial to ensure there’s no delay in containing and minimising the damage,” he said.

UpGuard will provide an early warning system, using proprietary technology to calculate potential cyberattack risk. Its Hobart-based CEO and co-founder Mike Baukes says this will “serve as a crucial component in detecting vulnerabilities early, helping businesses prevent attacks before they occur”.

Data shows 43% of cyberattacks in Australia target small businesses, at an average cost of $39,000 per incident.