Cyber insurance market set to grow

Regional head believes market in Singapore looks set for rapid expansion

Insurance News

By Jordan Lynn

Ransomware attacks have quadrupled in 2016 – and that means we can expect serious growth in the cyber insurance market in Singapore.

In the latest Breach Insights report, released by Beazley, it was revealed that ransomware attacks during the first nine months of the year had surged as the firm managed a total of 1,437 data breaches compared with 931 during the same period last year.

Gavin Hayes, head of Asia Pacific at Beazley, told Insurance Business that the cyber market in Singapore is set to react to this increased threat and regulatory changes.

“As attacks proliferate, the market will continue to grow globally as well as in APAC and Singapore particularly,” Hayes said.

“The notification regulations which have been in place in the US have been a key driver of the market there and similar developments here in Singapore will drive increase uptake when they’re implemented.”

The firm noted that in July and August 2016, it had handled more ransomware attacks than throughout the entirety of 2015.

Hayes stressed that the insurance industry has a key role to play in educating clients and businesses as cyber attacks continue to rise.

“The insurance industry can help clients by raising awareness of the risks themselves and by helping organizations recover after they experience a cyber attack or data breach,” he explained.

“Insurers are able to use their experience addressing specific risks to give their clients advice on how to plan for emerging risks like ransomware.”

The Breach Insights report noted that financial institutions are facing a high proportion of breaches utilising hacking and malware. The higher education and healthcare industries also came under the spotlight but Hayes was quick to note that this is an issue for all businesses.

“Cyber attacks are happening across all types of industries and organizations, from the largest international firms to small retailers and local police departments,” Hayes continued.

“It’s critical that organizations train employees to notice these attacks when they happen and that they have access to the resources and expert advice they need when they experience a data breach.”

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