In the News

Finance executives at the world’s top companies are wrongly assuming significant cyber risks are covered by their insurance, according to an FM Global survey which reveals a false sense of security at companies’ most senior levels.

New research by FM Global Australia has suggested that cyber insurance may create a false sense of security among senior financial executives at some of the world’s major companies.

Seven in 10 senior financial executives at some of the world’s largest companies falsely believe their insurer would cover most or all of the losses their company would incur in a cyber attack.

Nearly one-third of the 232 large-risk property-related claims FM Global Australia handled last year arose from equipment breakdowns.

An analysis of large risk losses reported in 2018 to FM Global has revealed equipment breakdown as the major cause of all property-related losses last year.

There’s clearly a lot at stake when machinery stops working. So, how can the industry improve this state of affairs?

While Australia may be among the best performers worldwide in FM Global's annual Resilience Index, FM Global Australia Operations Manager Lynette Schultheis warns there are still significant challenges ahead for businesses in the region.

“The most commonly overlooked or underestimated areas of exposure for businesses is denial,” says Lynette Schultheis, senior vice president and operations manager at FM Global.

A resilient national business environment makes managing risks less daunting. Fortunately, Australia has some advantages in this regard.

FM Global has released new fire protection and installation guidance to provide a fundamental basis for evaluating hazards in lithium-ion battery-based energy storage systems (ESS), as well as recommendations for appropriate automatic sprinkler systems and safe separation between full-scale EES racks.