The Morrison government is mulling the expansion of Australia’s terrorism insurance scheme to cover cyber terrorist attacks.
According to an auditor-general report released on Wednesday, the Australian Reinsurance Pool Corporation had tapped the Organisation for Economic Co-operation and Development (OECD) and Cambridge Centre for Risk Studies to conduct a year-long research study into the nature and cost of physical damage to commercial property, including business interruption, caused by acts of cyber terrorism.
The ARPC-commissioned study would identify and explore current and prospective threats, potential scenarios, as well as the practicalities of extending insurance coverage to include cyber terrorism in Australia, AAP reported.
The final study report is set to be released later this year.
Meanwhile, the auditor-general report, which looked into at the management of the terrorism reinsurance scheme, found that the scheme was being managed well by the ARPC.
The report also urged the Treasury to review the options available to rebuild capital in the scheme in case of an event leading to significant claims on it, AAP said.