Australasian companies encounter stricter cybersecurity insurance regulations compared to their global counterparts.
According to the 2025 Cyber Insurance Report from Arctic Wolf, businesses in Australia and New Zealand face stricter cyber insurance requirements than their global counterparts. The report, which surveyed 400 professionals from cyber insurance broker and carrier companies worldwide, reveals that organisations in these regions must implement a minimum of six security controls to qualify for coverage, compared to the global average of five. This heightened scrutiny is attributed to the elevated risk profile in Australia and New Zealand, where businesses are 9% more likely to experience a significant cyberattack than the global average. Insurers are tightening eligibility criteria to mitigate mounting risks, leading to an expectation of rising cyber insurance premiums, with 72% of global respondents anticipating increased rates in the coming year.
The report highlights specific regional requirements for cyber insurance eligibility in Australia and New Zealand, noting that email security (87%) and identity and access management (84%) are the most commonly mandated solutions. These figures significantly exceed the global averages of 66% for email security and 53% for identity and access management. While foundational controls are essential, the survey indicates that advanced protections, such as round-the-clock Security Operations Centres (SOC) and managed detection and response solutions, are considered the most effective measures for enhancing security postures. Additionally, ransomware remains the leading cause of claims globally, with 18% of insurance professionals reporting client incidents in the past year. Despite the increasing frequency of attacks, only 12% of policyholders submitted claims, with a quarter of those claims rejected due to policy gaps, underscoring the need for businesses to better understand their coverage.
Categories: Cyber Insurance Requirements, Cybersecurity Threat Landscape, Claims and Policy Challenges
Tags: Cyber Insurance, Australia, New Zealand, Security Controls, Cyberattack, Premiums, Email Security, Identity Management, Ransomware, Artificial Intelligence