Australian Reinsurance Pool Corporation, the government agency responsible for administering the country's terrorism reinsurance scheme, has commenced a research study on the threat of cyber terrorism in Australia, including the nature and cost of physical damage to commercial property (including business interruption), which may be caused by acts of cyber terrorism.
The 12-month research study, titled “Insurance risk assessment of cyber terrorism in Australia” will identify and explore current and prospective threats, plausible scenarios as well as the practicalities of extending insurance coverage to include cyber terrorism in Australia.
“Business insurance policies and the ARPC scheme currently exclude coverage for acts of cyber terrorism which affect commercial and high value residential property in Australia,” said Dr Christopher Wallace, ARPC chief executive.
“ARPC expects the cyber research study findings to inform development of government policy in this important area, including the three-year review of the terrorism insurance scheme by the Treasury,” Dr Wallace said. He said the research study will also make a significant contribution to the data set and knowledge of cyber terrorism risk in Australia, a risk which is currently under-researched.
ARPC has commissioned Cambridge Centre for Risk Studies, based at the University of Cambridge in the UK, and the OECD, based in France, to undertake the research with ARPC.