IAG Launches specialist SME Cyber Underwriting Agency

The Insurance Australia Group (IAG) has unveiled 'Cylo backed by CGU,' a specialist cyber underwriting agency aimed at bolstering the cyber resilience of small businesses in Australia while providing comprehensive insurance protection against cyber-attacks. CGU is a subsidiary of AIG.

Targeting businesses with revenues up to A$10m, this 'secure and insure' offering integrates cyber security measures within a cyber insurance policy to offer critical protection in a landscape of escalating cyber threats.

To deliver this end-to-end solution, IAG has partnered with UpGuard and Crawford & Company. UpGuard will supply continuous cyber risk monitoring for Cylo customers, acting as an early warning system to reduce the likelihood of cyber-attacks.

Meanwhile, Crawford & Company will manage 24/7 incident response, cybersecurity intelligence, and comprehensive claims management.

Con Bakas will act Cylo’s chief underwriting officer. Antonio Teixeira will act as market lead for the northern region of Australia, and Josh Shih will take charge of the southern region.

Jarrod Hill, chief executive of CGU and WFI, another IAG subsidiary, highlighted the urgency of the initiative, noting that cyber-risk is the top concern for Australian CEOs in 2024. “Recognizing this increasingly complex digital landscape, we set out to develop a best-in-class cyber insurance product to protect the small business segment. 'Cylo backed by CGU' is a comprehensive risk-informed underwriting proposition that sees us partner with world-leading cyber experts to provide peace of mind and security to our small business customers.”

Despite the rising threat, only about 20% of Australian SMEs currently have stand-alone cyber insurance. Cybercrime costs the Australian economy approximately A$42bn annually, with 43% of cyber-attacks targeting small businesses, averaging a cost of $39,000 per incident.

Mike Baukes, chief executive and co-founder of UpGuard, said: "Our ongoing cyber risk monitoring will serve as a crucial component in detecting vulnerabilities early, helping businesses prevent attacks before they occur. This partnership is a testament to our shared commitment to enhancing cyber resilience and protecting the critical assets of small businesses."

Jonathan Hubbard, president of Crawford Australia, emphasized the importance of immediate response and expert assistance in the event of a cyber-attack: “Cyber insurance has become a must-have purchase for businesses large and small, and then if the worst happens, it’s of paramount importance to have comprehensive expert cyber incident response help on speed dial to ensure there’s no delay in containing and minimizing the damage as much as possible.”

'Cylo backed by CGU' is exclusively available through CGU-affiliated brokers.