IT departments are the number one obstacle to overcome when it comes to selling cyber insurance policies, according to a survey of hundreds of Australian brokers by specialist CFC.  

The poll found 38% were challenged by their client’s IT lead or department, with assurances they didn’t need cyber insurance. Brokers gave cost as the second biggest obstacle, saying clients felt cyber insurance was too expensive.  

CFC Cyber Product Leader Philippa Berry says a long-held misperception amongst IT professionals persists that cyber insurers are pitching insurance as a replacement for security controls, when in fact “the reality is vastly different”.  

“Just as putting locks on your doors doesn’t negate the need for property insurance, strong IT security measures don’t negate the value of cyber insurance,” Ms Berry said.  

“A good cyber policy will not only transfer the financial risk associated with a cyber event, which can be substantial, but also offers an additional layer of proactive services to help prevent an attack from happening in the first place.”  

Cybercrime is costing Australian organisations billions of dollars each year, and rather than being mutually exclusive, IT departments and proactive cyber insurers like CFC can work together on the best possible protection against cybercrime at a price that reflects the necessary level of protection and support. 

“Price is always an issue, but the cost of a cyber claim is so much greater,” Ms Berry said.