ASX100 cyber security scheme to benefit insurance companies

ASX100 cyber security scheme to benefit insurance companies

ASX100 cyber security scheme to benefit insurance companies By Mina Martin

Insurance companies and consulting firms are likely to benefit most from the government’s plan to introduce voluntary cyber security health checks at Australia’s biggest companies, says a report by WAtoday.

The health checks are part of the Federal Government’s $230 million Cyber Security Strategy, which aims to guide Australia into becoming a cyber smart nation.

The health checks aims to raise awareness among businesses about cyber risks and opportunities. It will be coordinated by the Australian Securities Exchange, in partnership with government agencies and the private sector, and offered to the top-100 listed companies.

The scheme is similar to checks in listed companies in the United Kingdom − only optional rather than mandatory.

According to industry figures, the health checks will provide valuable information for insurance companies pushing for cyber security protection.

“This would be very positive news for insurers because it would give them a common grounding to base their price premium pricing on,” said Scott Guse, an Audit and Advisory Partner at KPMG.

Guse explained that even as cyber security insurance is growing in Australia, insurers are still grappling with how to price premiums and assess risks. He added that insurance companies don’t have the skills in-house to go into an organisation and implement cyber health reviews.

“If they can use this as a benchmark, it will provide a consistent framework across all companies,” Guse said.