Australian businesses and broker clients take a cautious approach to AI
April 9, 2026
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May 7, 2026
There has been considerable movement in the Cyber insurance market in recent years. Difficult market conditions in 2022 and 2023 have given way to what is now an incredibly competitive Cyber insurance market that seems to defy daily reports of increased cyber-related incidents and losses.
Publications from some of the world’s largest insurance brokers reported average Cyber insurance premium reductions throughout 2025 of between 5-15%, through to 10-30%. Our own experience shows a baseline of 10-20% through 2025, with more substantial premium reductions readily achievable for larger organisations with a greater overall premium spend and a more sophisticated cybersecurity profile.
In addition to premium savings, material coverage enhancements have also been achievable, and we’re now seeing more Cyber insurers offering pre-loss support services (in many cases, complimentary) to their insured business customers, effectively helping their customers to improve their existing cybersecurity controls.
The favourable conditions seen in 2025 have continued into 2026, and we expect that to continue for at least the next 6-12 months. Whilst factors such as increasing breach and attack frequency, a more onerous cyber and data regulatory environment, and a growing risk associated with AI-assisted cyber-attacks point to current market conditions not being sustainable in the medium-to-longer term, the growth in the global Cyber insurance market is not slowing down, as currently uninsured or underinsured businesses leverage current market conditions to purchase Cyber insurance or increase their existing limits. Additionally, Cyber insurance remains profitable for most insurers, fuelling competition.
What does this mean for your business?
If your business does not currently purchase Cyber insurance, we would recommend you CONTACT US. Current market conditions make it easier and more affordable than it has ever been to buy Cyber insurance.
If you do currently purchase Cyber insurance and would like to know what your current insurer can do to assist your business to become more cyber resilient, please don’t hesitate to GET IN TOUCH with your Praden contact.
This communication is for general information purposes only and does not take into account any specific individual’s or business’s objectives, financial situation or needs. Before acting on any of the information provided herein, you should consider how it applies to your specific circumstances and contact an insurance broker and / or other appropriately qualified professional to discuss. Any advice given on what is or is not covered under any specific insurance policies is general only. You should always refer to the relevant PDS and policy wording to determine whether the coverage is appropriate for your individual circumstances.
Author: Sam Giorgatzis
