Cyber reinsurance’s potential to drive growth across the Asia Pacific (APAC) region has been underlined in a new report from Fitch Ratings.
The APAC region is reported to have accounted for 7% of the total reported ransomware incidents in 2020.
Fitch says several Asian markets have developed regulations to reflect the increased focus on cyber resilience, such as India’s Personal Data Protection Bill 2019.
The regulation is aimed at creating guidelines around the management of personal data, including an individual’s personal information rights.
A company may have to pay a penalty of up to $2.1 million, or 4% of total revenue, if found violating norms pertaining to the processing or transferring of personal data under the Personal Data Protection Bill.
The report notes how Singapore has also proposed a cyber security bill that mandates organisatio
It’s believed these regulatory developments could increase cyber reinsurance demand as companies will have more concerns over the mitigation of higher potential loss, not only from the business disruption but also from the regulator penalties for cyber incidents.
Furthermore, some of the regulatory requirements for reporting any ransomware attacks will provide data transparency and historical loss records for reinsurers, which will enable them to quantify it in pricing and protection coverage.