We are pleased to announce Marcus Stavrakis as the winner of the 2023 Young Actuaries’ Public Policy Essay Competition.
Marcus’ essay “How the Australian Reinsurance Pool Corporation (ARPC) and Insurers can protect our data” looks at the vulnerability of small to medium enterprises (SMEs) to cyber-attacks and the resulting losses to their business and broader economy. Marcus’ thesis is that better access to cyber insurance for SMEs would highlight the benefits of cyber hygiene for these organisations, however the existing cyber reinsurance market is underdeveloped and there is insufficient cyber insurance available for these types of companies.
In uncovering the problem, Marcus said
“SMEs are increasingly reliant on digital infrastructure for their operations, including communications, cloud processing, physical security systems, data storage, and billing. We know that around 50% of SMEs have poor cyber security practices and that nearly half of the cyber-attacks target SMEs, posing a significant threat to Australian businesses and consumers.”
Marcus is working closely with the cyber working group to expand on his ideas and we hope there will be a further Institute publication on cyber risk later in 2023.