IAG launches Cylo to boost cyber resilience for small businesses

IAG has unveiled its specialist cyber underwriting agency, Cylo, which is supported by CGU. Designed to bolster the cyber resilience of small businesses in Australia, the new agency also aims to provide insurance protection against cyber-attacks.

Cylo will cater to businesses generating revenues of up to AUD $10 million. The unique "secure and insure" offering integrates cyber security measures directly into the cyber insurance policy, providing vital protection against escalating cyber threats.

IAG partnered with UpGuard and Crawford & Company to deliver its comprehensive offering. As part of the arrangement, UpGuard will offer ongoing cyber risk monitoring to Cylo customers, serving as an early warning system to identify vulnerabilities and reduce the likelihood of cyber-attacks. Crawford & Company will manage round-the-clock incident response, cybersecurity intelligence, and complete claims management.

Jarrod Hill, Chief Executive Officer of CGU and WFI, commented, "With cyber-risk ranked as the leading concern for Australian CEOs in 2024, we recognise the deep anxiety businesses have regarding the rising incidences of cyber-attacks and their potential impact. Acknowledging this increasingly complex digital landscape, we set out to develop a best-in-class cyber insurance product to protect the small business segment. Cylo is a comprehensive risk-informed underwriting proposition that partners with world-leading cyber experts to provide peace of mind and security to our small business customers."

According to the Insurance Council of Australia, only about 20% of Australian SMEs currently have stand-alone cyber insurance. Meanwhile, cybercrime costs the Australian economy approximately AUD $42 billion annually, with 43% of cyber-attacks targeting small businesses at an average cost of AUD $39,000 per incident.

Mike Baukes, CEO and Co-Founder of UpGuard, stated, "We are proud to collaborate with IAG on this innovative initiative to protect Australian businesses. Our ongoing cyber risk monitoring will be crucial in detecting vulnerabilities early and helping businesses prevent attacks before they occur. This partnership underscores our shared commitment to enhancing cyber resilience and protecting the critical assets of small businesses."

Jonathan Hubbard, President of Crawford Australia, added, "In our experience, it is not only large businesses that are targeted by cyber criminals. Cyber insurance has become essential for businesses of all sizes. If the worst happens, having comprehensive expert cyber incident response rapidly available is paramount to minimise the damage as much as possible."