Australia and other nations need to start countering the emerging threat of cyber terrorism, according to a global broker’s US-based expert.

JLT Senior VP Cyber Practice Reid Sawyer is visiting Australia to address a range of cyber-security issues with the Federal Government, corporations and colleagues.

The US army veteran told insuranceNEWS.com.au that while cyber terrorism is in its “embryonic stages”, action is needed now.

“There is a lot of hyperbole around this issue, with people saying terrorists are going to bring down our planes,” he said.

“In reality the capabilities of ISIS and al-Qaeda are not nearly that sophisticated yet.

“However, it is just a matter of time and it is critical that we start preparing today. It’s an over-the-horizon risk, but it’s not that far off.”

Mr Sawyer says Australia is as exposed to cyber crime as the rest of the world.

“This is a global risk, and it almost doesn’t matter if you are in Brisbane or California,” he said. “Australia has natural military boundaries in the traditional sense, due to its coastline and distance from other nations, but this is absolutely not relevant to the cyber threat.”

He believes major incidents such as the WannaCry attack will encourage take-up of cyber insurance in Australia, as will changes to legislation mandating reporting of data breaches.

“The regulatory environment is a key driver,” he said.

“And WannaCry, launched in multiple places to devastating global effect, demonstrates the systemic risk that businesses are operating under today.

“I would be surprised if we don’t see significant uptake in purchasing. It’s a smart business decision.

“Businesses need to be thinking about how an attack would impact on their operations, and this is where cyber insurance can play a critical role.”

Mr Sawyer believes the development of technology such as autonomous vehicles and robotics could increase the risk.

“There is not one single industry vertical that is not looking at this kind of innovation.

“We could have 20 billion connected devices by 2020, and the attack surface is rising exponentially.

“Where does the liability exist with an autonomous vehicle sitting within a sharing economy? The technology is advancing at such a rate that the safeguards are yet to be built in.”