The Asia Pacific (APAC) region is witnessing a remarkable surge in demand for cyber insurance, driven by rapid digital transformation. Emerging markets such as Thailand, Malaysia, Vietnam, Indonesia, and the Philippines are identified as key growth areas, according to Gallagher Re.
As of January 1, 2024, the APAC cyber insurance market is expanding at nearly 50% annually, comprising 7% of the global market. However, despite this robust growth, penetration rates remain significantly lower than in other regions. In 2022, cyber insurance premiums in the United States represented 0.0353% of GDP, while APAC’s average was only 0.0025%, roughly 14 times lower.
Even major economies like China and India exhibit potential for increased cyber insurance uptake. Regulatory changes are anticipated to further boost demand, as countries such as Singapore and China introduce stringent data protection laws mandating adequate cyber insurance coverage for businesses.
There are also promising opportunities in sectors that remain underrepresented, particularly among small and medium enterprises (SMEs) and individual consumers. Nonetheless, challenges persist in APAC’s cyber insurance landscape, including a lack of standardized policy terms, difficulties in risk assessment and underwriting due to the evolving nature of cyber threats, and limited historical claims data given the market’s relatively nascent stage.
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