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Asian News - Singapore: Cyber insurance mart to surge by 50% this year

Source: Asia Insurance Review | May 2016

The cyber insurance market in Singapore is forecast to grow by 50% this year as more businesses look to mitigate the high reputational and financial risks associated with cyber breaches, according to AIG Asia Pacific Insurance (AIG Singapore).
   AIG Singapore’s Head of Financial Lines, Ms Lai Yen Yen, said: “While cyber attacks grow in size, volume and sophistication, defensive methods and technologies have not seen a corresponding evolution, potentially costing businesses millions in the event of a cyber breach.”
   Research undertaken by AIG revealed that two-thirds of public companies in Asia surveyed acknowledged cyber insurance to be increasingly important in the future, although only 9% of these companies were covered by cyber insurance.
   Ms Lai said: “Over the past three years, AIG Singapore has seen a seven-fold increase in inquiries about cyber insurance policies. We predict this strong demand from Singapore companies will continue over the next five years. Based on what we have observed, less than 10% of Singapore companies hold such insurance, but we forecast that the number of companies taking up cyber insurance will accelerate to 40% by 2020.”
   AIG Singapore expects strong demand for cyber insurance to continue from finance and technology companies, and new demand to emerge from healthcare companies. The insurer also forecasts cyber risks in 2016 to range from both internal and external factors, including lack of data encryption, increased use of malware, and outsourcing to third-party providers.
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