*Reference: Allianz Global Risk Report 2025

**Reference: insurancenews.com.au – Cyber Fears Maintain Grip On Business Leaders

Why Australian Businesses Need Cyber Insurance Now More Than Ever

As we kick off 2025, the threat of cyberattacks continues to dominate the concerns of Australian business leaders. According to the latest Allianz Global Risk Survey, cyber incidents—including data breaches, ransomware attacks, and other cyber threats—remain the top worry for companies this year. And it’s no surprise. With high-profile data breaches like Optus, Medicare, and the CrowdStrike incident still fresh in our minds, Australian businesses are recognising the critical need for robust cybersecurity measures. But is having a secure network enough?

Cyber Threats Are Top of Mind

*For the fourth year running, cyber incidents topped the Allianz Risk Barometer, with a staggering 56% of Australian respondents ranking them as their number one concern. It’s clear that the frequency and sophistication of cyberattacks are only increasing, with no sign of slowing down. This ongoing wave of cyber threats is forcing businesses to re-evaluate how they prepare for and respond to these risks.

Interestingly, changes in legislation and regulation (45%) now sit in second place as a major concern for Aussie business leaders, followed by natural catastrophes (28%). While these issues remain pressing, it’s cyber incidents that are keeping CEOs, managers, and decision-makers up at night.

What’s Driving the Concern?

Phuong Ly, Chief GM of Commercial at Allianz Australia, explains that businesses are more concerned about cyber risks than ever before due to the rising tide of high-profile cyber breaches. With each attack, the impact on reputations, operations, and finances grows. It’s no longer just about IT systems being compromised; it’s about entire business ecosystems being disrupted.

How Regulatory Changes Play Into the Risk

As if the cyber threats weren’t enough, the rapidly evolving landscape of cybersecurity regulation is making life even more complex for Australian businesses. Phuong Ly points out that the complexity surrounding compliance is a key challenge, as organisations must stay on top of new and changing regulations around data privacy, security standards, and breach reporting.

And it’s not just about ticking a box for compliance. Companies that fail to meet these regulatory standards risk severe penalties, not to mention the damage to their reputation and customer trust. Having an up-to-date, comprehensive cyber insurance policy helps businesses not only manage the financial fallout from cyber incidents but also stay aligned with legal requirements.

Global Trends and Emerging Threats

Globally, cyber risk continues to top the Allianz Risk Barometer, where 38% of respondents list it as their number one concern. And the shift towards new technologies, such as Artificial Intelligence (AI), has added a new layer of risk. While 50% of global businesses see AI as bringing more benefits than risks, the remaining 15% are wary of the new dangers it may introduce—particularly in terms of data breaches, system vulnerabilities, and automation errors.

AI is a double-edged sword: it can bring operational efficiency and innovation, but it also introduces a range of new risks that businesses must prepare for. This has made the “new technologies” category a hot topic for companies—especially those operating in data-heavy sectors.

The Bottom Line: We’re here to help

With the rising frequency and sophistication of cyber threats, it’s more important than ever for Australian businesses to be proactive in their risk management strategies. Cyber insurance is a critical part of that strategy. It provides businesses with the financial protection they need in case of a cyber incident and supports them through the complex and ever-evolving landscape of cybersecurity regulations.

If your business isn’t already covered by cyber insurance, or you wish to review your Cyber Insurance coverage, reach out to our brokers and we’ll guide you through the process.

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