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‘Silent cyber’ looms as key challenge for insurers: Aon

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Insurers in Australia and globally are under pressure to more clearly define whether so-called “silent cyber” risks fall under traditional property and casualty policies, according to Aon.

Silent cyber exposures gained prominence after the NotPetya ransomware attack in 2017 when insurers saw significant claims for business interruption losses caused by the incident.

“Insurers will continue to grapple with the intent of existing policies. They will have to decide if their traditional policies will affirmatively respond or exclude cyber incidents,” Aon says in a report.

The report says the Australian cyber insurance market is worth more than $100 million and will continue to grow as more businesses take the digital threats seriously.

“For a combination of reasons, both businesses in Australia and around the globe continue to focus on their cyber risk and cyber insurance,” Michael Parrant, Aon Client Manager and Cyber Insurance Practice Leader, told insuranceNEWS.com.au.

“Cyber insurance has migrated from being a discretionary purchase, and is increasingly becoming a mandated insurance policy, either as a contractual requirement, or as part of the adoption of best practices.

“Cyber risk is ubiquitous, and businesses are becoming acutely aware of its consequences.”