Insurance Trends for 2025

As we near the end of the year, not only is it important to reflect on the highs and lows of the past twelve months, it is also important to prepare ourselves for the next chapter for our business.

Here at ii-A, we have had another highly successful year protecting individuals and organisations, and helping to ensure that they have the right cover in place to cover themselves. However, as the end of the year draws near, we are now focusing our efforts on preparing ourselves for what lies ahead. With new areas and developments to consider, we are working hard to find ways to further protect our clients from unprecedented expenses.

2025 is set to be a year filled with the expansion of AI and therefore the heightened risk of cyberattacks, yet we will be there to assist organisations no matter what challenge they may face. Below are just some of the expected developments and complexities that businesses may face in 2025.

1. Advanced AI

As the world becomes more digital and businesses become more reliant on the powers and development of AI, the need for increased protection against rising threats has never been higher. While AI has proven benefits such as helping with stock control and improving overall business efficiency, it also has its downsides which can cause a business to be negatively affected for a long period of time. 

As AI develops so does the need for extra finance, as integrating AI into previously existing systems can be expensive in multiple ways. Whether it is the cost of initial installation or the finances required to train your staff so that they are well equipped for the new software.

Another problem that may occur as a result of integrating more AI software into your company is the increased risk of data breaches. As your business is likely to file important financial information, extensive cybersecurity is now a must for any operating Australian business. This extra security will help ensure that your data is as highly protected as it can be from hackers who utilise AI to their own advantage. 

2. Issues Surrounding Trust

The heightened risk of data breaches however, has altered the trust of the public towards many companies and corporations. For instance, Canva suffered a cyber attack that compromised the data of 137 million users, while Latitude experienced a breach that impacted over 14 million customers in Australia and New Zealand. These incidents have severely undermined confidence in how companies handle personal data.

The growing risk of data breaches have also caused many companies to have to level up their security security operations in order to maintain customer satisfaction and trust, which has proven costly for many. As hackers can access customers' personal data, such as their banking details, home location as well as their passwords, individuals have become increasingly sceptical of the need for AI in businesses. This lack of trust in a company, as a result of the implementation of AI, has caused many customers to avoid certain companies and invest their money elsewhere. This, ultimately, costs the company a large part of their revenue in the long run, and can allow their competitors to have an increased impact in their market sector.

3. Customer Demands and Needs

In order to retain your customers' trust and investment during this growing age of technology, it is important to ensure you meet their demands and needs. Due to the increased risks of personal data breaches as a result of more developed technology and hackers greater ability to access business information, customers are becoming increasingly aware of companies that highly rely on AI technologies. In Australia, the Office of the Australian Information Commissioner reported 527 data breaches between January and June 2024, demonstrating the importance of investing in secure software, so that your customers are protected.

To add to this universal demand and expectation to keep their data protected, customers are also increasingly demanding that companies are honest and authentic, in regards to their company ethics and policies. As people are starting to lean more towards environmentally considerate companies and organisations that have a positive impact, businesses are increasingly trying to alter their operations so that they can trade in-line with their customer expectations. 

However, if a company experiences a data breach, there is the risk that they will be exposed for unethical trading practices, which could damage their reputation and force customers to go elsewhere. This will lead to a decline in trust from customers as their expectations would not have been met resulting in them not feeling valued as a customer.

To help prevent your company losing customers' trust and ensure that you can implement the latest AI technology without the worry of potentially creating lawsuits that could financially disrupt your business, cyber insurance is the best investment. With ii-A’s cyber insurance policy, we will be able to financially protect you if any problems arise which could damage your business’ ability to trade effectively. From legal fees and regulatory fines to data breach and data recovery, our cyber insurance is there to protect your business, assets and yourself if any problems do occur.

Not only does our policy provide financial protection, we can also assist you in managing any reputational damage caused by a cyber threat as well as help you create a management risk strategy, so that you can understand the best practices in cyber security.

By investing in the most secure cybersecurity software as well as our Cyber Insurance policy, you will not only have the best protection possible, but you will also be protected if hackers manage to gain access to your company data. With our Cyber Insurance, your company can be assured that you will be protected across the new year. Our financial protection cover that ranges from cyber extortion to business interruption will give you peace of mind that you won’t be faced with any unexpected costs. 

To find out more, you can reach out to us to discuss how we can help your business stay protected and build trust in the coming year.