Coalition Australia raises standard cyber crime cover to $500k

Coalition Australia has increased its standard cyber crime coverage for eligible occupations to AUD $500,000, which will be included at 25% of the overall policy limit on all its cyber insurance quotes.

The company has stated that higher coverage limits, up to AUD $1 million, are also available upon referral to an underwriter. This development comes in response to findings from Coalition's 2025 Cyber Claims Report, which indicates that social engineering remains a predominant threat facing organisations.

Trent Nihill, Head of Underwriting, Coalition Australia, said, "We are focused on improving cyber resilience for all Australian organisations. By doubling our standard cyber crime limit to up to AU$500,000, we can design a policy that meets the needs of our policyholders. Our recent Claims Report showed that the average FTF loss is now over AU$250,000, which shows there was a clear gap in the market."

He continued, "This proactive step aligns with Coalition's Active Insurance approach, which combines extensive data insights and security tools to help organisations prevent claims and minimise impact when incidents do occur."

The 2025 Cyber Claims Report compiles data from Coalition policyholders globally, including Australia, the United States, Canada, and the United Kingdom. The report found that business email compromise (BEC) and funds transfer fraud (FTF) accounted for the majority of global cyber claims in 2024, together comprising 60% of such claims. Additionally, the report noted that 29% of BEC incidents led to FTF, and that the average global FTF loss was AUD $290,000.

Stephanie Blase, Claims Counsel at Coalition Australia, said, "We're pleased to see Australian claims data reflected in the global report, considering that BEC and FTF are also our most frequent incidents locally."

She added, "Cyber threats are global, and we believe these insights and risk mitigation strategies are valuable for organisations worldwide to understand. We're proud to contribute to keeping our policyholders, brokers, and the broader industry informed about the most critical claims trends."

The report observed several other global trends in cyber risk. While claims frequency decreased by 7% year-on-year, the severity of claims remained stable. Ransomware claims, while still the most costly and disruptive category of cyberattack, experienced a stabilisation in 2024, with frequency falling 3% and severity reducing by 7%.

The report also highlighted an increase in the severity of BEC claims by 23%, while FTF claim frequency dropped by 2% and severity by 46% compared to the previous year. The reduction in FTF claim severity follows a peak in 2023.

Of the policyholders who experienced ransomware incidents, 44% opted to pay the ransom where it was considered reasonable and necessary. Coalition's affiliated incident response team was reported to have negotiated ransomware payments down by an average of 60%.

Coalition policyholders recorded 73% fewer claims than the broader industry average, using data from the National Association of Insurance Commissioners (NAIC), based on a comparison of claim frequencies reported by US insurers.

The findings from the report are derived from data across several regions but highlight trends that are relevant to the Australian market. The role of business email compromise and funds transfer fraud remains significant in the claim landscape, both locally and globally.