Medibank estimates about $22 mn hit from cyber attack

Medibank, the biggest health insurer in Australia, has warned of a A$25 million to A$35 million ($16 million to $22.3 million) hit to first-half earnings from costs related to a cyber security incident that compromised data of all its insurance customers.
IT network security issuesMedibank said that personal and significant amounts of health claims data of all its customers was compromised in the breach reported earlier this month, a day after it warned the number of customers affected would grow.

Medibank, which covers one-sixth of Australians, said the cost did not include potential remediation or regulatory expenses.

The company reiterated that its IT systems had not been encrypted by ransomware to date and that it would continue to monitor for any further suspicious activity. Medibank does not reveal its IT budget and technology partners responsible for cyber security.

Medibank, which also withdrew its fiscal 2023 policyholder growth forecast, reported an after-tax profit of about A$394 million for fiscal 2022 in August.