Insurance is often considered a necessary evil for business owners and a new report from Allianz Commercial reveals just what the top risks to businesses are in 2024.

According to their experts, cyber incidents such as ransomware attacks, data breaches and IT disruptions are the biggest worry for companies globally this year. This is backed up by research by KPMG in their report, Keeping us up at night, which surveyed more than 300 Australian CEOs

That's not surprising considering the media frenzy over incidents such as the Medicare privacy breach last year. However, mother nature's extreme behaviour is also a major influence in our region.

Allianz say the worry about cyber security cuts across all business sizes, from multinational to small. However, they say smaller businesses often lack the time and resources to identify and effectively prepare for a wider range of risk scenarios and, as a result, take longer to get the business back up and running after an unexpected incident.

"Cyber criminals are exploring ways to use new technologies such as generative artificial intelligence (AI) to automate and accelerate attacks, creating more effective malware and phishing," explains Scott Sayce, Global Head of Cyber, Allianz Commercial.

"The growing number of incidents caused by poor cyber security, in mobile devices in particular, a shortage of millions of cyber security professionals, and the threat facing smaller companies because of their reliance on IT outsourcing are also expected to drive cyber activity in 2024."

Another fast mover on the insurance risk list is no stranger to Western Plains residents - natural disasters.

Natural catastrophes (26 per cent) is one of the biggest movers globally at number three, up three positions from the previous year. 2023 was a record-breaking year on several fronts. It was the hottest year since records began, while insured losses exceeded US$100bn for the fourth consecutive year, driven by the highest ever damage bill of US$60bn from severe thunderstorms.

Data released by Insurance Council of Australia (ICA) in late 2022 showed that the national insurance bill for storms and floods since January 2020 had topped $12.3 billion. This included 3583 claims from the Central West NSW area alone.

"Each one of the 788,000 wild and wet weather claims lodged with insurers over the past three years represents a significant disruption to an Australian homeowner, tenant, landlord, business owner, primary producer or motor vehicle owner," ICA CEO Andrew Hall said.

The fact that one in 25 of us has had to lodge an insurance claim because of this extreme weather is very sobering and the effect on insurance premiums is starting to sting.

Emma Robinson, owner of Gilgandra Pharmacy said her business had been one of the lucky ones in flooding events of recent years not to have sustained damage.

"We were very grateful for the flood levee," she said. "But when insurance premiums came in again and for our home as well, the cost has just skyrocketed. It makes you wonder if it's worth the cost."