The Asia-Pacific region has experienced rapid digital transformation in recent years, particularly since the COVID-19 pandemic. This has driven a corresponding increase in cyber risks, which require robust insurance solutions, says global reinsurance broker Gallagher Re.
In a report, titled “Protecting the Digital Revolution — The State of the Asian Cyber Insurance Market in 2024”, Gallagher Re explores the current market conditions, key drivers, challenges, reinsurance options, and prospects for the cyber insurance sector in the APAC region.
Key findings are:
-
Demand for cyber insurance in APAC is growing at almost 50% per year, accounting for 7% of the global market as of 1 January 2024
-
There is significant potential for further growth, especially in up-and-coming markets like Thailand, Malaysia, Vietnam, Indonesia, and the Philippines, but equally, the emerging giants of China and India still have plenty of room for penetration rates to improve
-
Regulatory requirements for data protection are driving the need for cyber insurance coverage
-
There are untapped markets for cyber coverage among SMEs and individuals in APAC
-
Challenges in the market include policy standardization, risk assessment, and limited claims data in a new and evolving field
-
Reinsurance solutions can help insurers address these challenges and provide more comprehensive coverage.