Apac cyber demand growing at 50% per year: Gallagher Re

Demand for cyber insurance in the Asia-Pacific (Apac) region is growing at almost 50% per year, according to a new report by Gallagher Re, as the region continues to experience a digital transformation of its economy.

This means that cyber insurance in Apac accounts for 7% of the global cyber insurance market as of January 2024.

There is “significant potential for further growth” in the up-and-coming markets like Thailand, Malaysia, Vietnam, Indonesia, and the Philippines, Gallagher Re said.

Meanwhile, the emerging market giants of China and India “still have plenty of room for penetration rates to improve”, the broker added.

Indeed, cyber premiums as a percentage of gross domestic product were 14 times lower across Apac than in the United States, the most developed cyber insurance market.

Source: Gallagher Re

Regulatory requirements are driving the need for cyber insurance coverage in markets such as Singapore and China, which are implementing stringent data protection laws. Ensuring adequate cyber insurance coverage is often a requirement for compliance with these regulations.

However, challenges remain to further growth. These include a lack of standardization in policy wording and coverage; the underwriting and risk-assessment challenges of keeping up with a fast-moving cyber threat landscape; and the relative lack of historical claims data in a new and evolving field.

The full Gallagher Re report can be accessed here.