Unpacking Cyber Insurance: A Q&A with Andrew Brett
In today’s maturing Australian business environment, building cyber security resilience is no longer just about prevention. A truly robust strategy must also account for effective incident response. When a cyber incident occurs, having a well-defined plan is critical. This is where cyber insurance, if understood well and aligned with your business needs and response plans, can be a powerful tool, if you know how to wield it.
To shed light on this often-misunderstood topic, we’re unpacking what cyber insurance is and the vital role it plays in modern business resilience through a Q&A with a specialist cyber insurance broker Andrew Brett from Infosure.
What is Cyber Insurance?
Question: To kick things off, what is cyber insurance?
Answer: Cyber insurance is primarily an incident response retainer solution. It’s not like your traditional insurance policies that you buy and forget about until something goes wrong. This is a tool that should be on the desk, ready to be used. It gives you the ability to pick up the phone and get immediate assistance from cyber security experts without having to worry about the escalating costs.
Is Cyber Insurance Just Another Grudge Purchase?
Question: Many people see traditional insurance as a “grudge purchase”. Does this apply to cyber insurance, and does that misunderstanding stop people from thinking about it until it’s too late?
Answer: That’s a key misunderstanding. Unlike traditional policies you just file away, cyber insurance is a proactive tool. It’s designed to be used. We encourage clients to see it as having experts on retainer. The real value is being able to act quickly at the first sign of trouble. In fact, half of the calls we get don’t even lead to a formal claim. It’s about providing that peace of mind and proactive support to investigate a suspicion before it becomes a major crisis.
Cyber Insurance vs. Cyber Security: What’s the Difference?
Question: What is the relationship between proactive cyber security measures and cyber insurance? Should you have defenses in place before you consider insurance?
Answer: Cyber insurance is actually completely separate from cyber security, to a degree. Cyber security is about prevention, building walls and defenses to keep attackers out. Cyber insurance is the fire brigade or ambulance officers that you call when those defenses are breached. It’s about your response and recovery.
The broker further explained that the difference in mindset between a business with and without cyber insurance during a breach is like “chalk and cheese”. Those with insurance can focus on the problem at hand, without the added stress of a ticking financial clock for incident response, which can quickly run into hundreds of thousands of dollars.
The Hidden Value of Cyber Insurance
Question: It seems the value of cyber cover is less about the insured amount and more about the response capabilities. Can you elaborate?
Answer: Absolutely. One of the most significant benefits is access to top-tier professionals. Insurers subcontract to the best of the best for incident response because it’s their money on the line. So, regardless of your company’s size, you get access to the same experts that the big players use.
A surprising fact is that 50% of the calls to our insurers don’t even result in a formal claim. A policyholder can call with just a suspicion of an incident, and the insurer will investigate at no charge. This proactive support can prevent minor issues from escalating into major breaches, saving a significant amount of money and stress down the line. It’s about peace of mind.
Why the Focus on Cyber Insurance Now?
Question: What led you to specialise in cyber insurance?
Answer: There was a ‘light bulb moment’ when it was realised that while cyber security was the number one risk concern for all businesses, less than 15% of Australian businesses had cyber insurance. This huge gap in the market, with consumers needing cover and brokers finding it hard to navigate the new landscape, is what prompted the specialisation. Cyber insurance is the unsung hero of business resilience.
This interview highlights that cyber insurance is not just another policy, it’s a proactive and essential service designed for business. It provides not only a financial safety net but also invaluable expertise and peace of mind.
To find out if cyber insurance is right for you contact Infosure.
The full interview is available to watch right now below.