Only 6% of NZ SMEs have cyber coverage
Small and medium-sized businesses in New Zealand are lagging in cyber insurance coverage compared to their Australian counterparts, the Insurance Council of New Zealand has said. More than 90% of New Zealand's businesses fall into this category, with most having less than 20 employees. Only 6% of these businesses have cyber coverage, compared to 14% of small businesses in Australia. One fifth of the country's small businesses have been subject to a cyber attack, according to a recent survey.

Sixty per cent of cyber attacks target small and medium businesses. Photo / 123RF

New Zealand small businesses are lagging behind Australia in their uptake of cyber protection, according to the Insurance Council of New Zealand.

Only 6 per cent of all small businesses in New Zealand have cyber insurance - less than half the amount of Australian small businesses, at 14 per cent.

Without cyber insurance many Kiwi businesses are vulnerable to digital attacks, Insurance Council chief executive Tim Grafton said.

"Big corporates get it, we are seeing a real move to most having a cyber policy or at least a standing item on their board agendas," Grafton said. "The real problem area is small and medium enterprises. We are a nation of small businesses with more than 90 per cent of businesses in New Zealand under 20 employees."

The most common sort of crypto attacks are unsophisticated and low in value, but can be damaging to small businesses, Grafton said.

A recent Norton New Zealand small business security survey found one in five small firms in New Zealand had been targeted by a cyber attack.

Ninety per cent of cyber incidents begin with human error, which makes robust cyber risk management for organisations extremely important, he said.

"The common sorts of crypto attacks are unsophisticated, untargeted and, while low in dollar value – usually sub $5000 - enough to be an annoyance and damaging to a small business."

The average amount of time a breach goes unnoticed is around nine months.

Sixty per cent of all cyber attacks target small and medium businesses, and retail and the financial services sectors are most at risk of a data breach, according to the Insurance Council of New Zealand.