A proposed change to the Privacy Act will force businesses to notify affected clients and relevant regulators if personal information is leaked – thus raising the risks posed by cyber attacks and accidental breaches.

If the amendment becomes law more organisations will buy cyber risk cover, according to Marsh NSW Manager of Financial and Professional Services Craig Claughton.

“Clients have self-identified cyber risk as one of their top five operational risks, so it is very much on the minds of boards and risk and audit committees,” he told insuranceNEWS.com.au.

Many organisations are unsure where the main threats to their business lie, Mr Claughton says. Those relying on traditional policies are likely to find gaps in their protection.

The Privacy Amendment (Privacy Alerts) Bill is currently before the House of Representatives.

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