Lexasure Financial Group Limited (Lexasure), specialising in reinsurance, insurance, and insurtech solutions across South and Southeast Asia, joins forces with OneDegree Global (ODG), the technology division of OneDegree Group renowned for its IXT insurtech solutions and Cymetrics cybersecurity services.
They revealed a joint cyber insurance solution at the ITC Asia conference in Singapore, held from June 4 to 6, 2024.
This leverages cyber risk assessment capabilities and technologies to introduce a Reinsurance-as-a-Service (RAAS) solution for cyber insurance.
“With increased digitisation, Asian businesses are increasingly vulnerable to cyberattacks and ransomware. These attacks can cause devastating financial losses and irreversible brand damage – highlighting the critical need for cyber insurance,” added Ian Lim, Chief Executive Officer of Lexasure.
“The real-time risk assessment in such a complex field and near-instant policy issuance for eligible companies is a significant advantage and is optimised for the needs of small and medium enterprises and industries. By combining ODG’s assessment solutions with our platform’s ongoing innovations for digital reinsurance, the RAAS platform delivers a scalable and cost-effective way to manage risk without investing in their own reinsurance infrastructure.”
This platform enables insurers and their distribution channels to provide a fully digital, streamlined customer journey, from onboarding and risk profiling to straight-through underwriting and policy issuance.
By integrating an advanced cyber risk exposure scanning solution into the underwriting process, the platform significantly improves technology risk assessment.
It delivers a prospect’s real-time security posture score within minutes, facilitating a hassle-free onboarding experience with instant policy issuance in under 10 minutes for eligible small to medium-sized enterprises.
According to a Cisco report, 56 percent of small and mid-sized businesses in the Asia-Pacific region experienced a cyber incident in the past year. However, cyber policies make up less than one percent of the insurance market in Asia and Oceania, as per the IAIS’ Global Insurance Market Report 2023.
“As digital technology continues to permeate every aspect of our lives, the digital domain is facing an unprecedented escalation of cyber threats. Particularly for small and mid-sized companies, they are confronted with a critical challenge where a significant portion of cyber risks remains uninsured or underinsured,” commented Michelle Ip, CEO of OneDegree Global.
Despite intentions to increase cyber insurance spending, many of these enterprises may encounter unexpected coverage gaps. For instance, while a company may have coverage for a data breach, it might lack protection against compromised email or ransomware attacks. It’s crucial for companies to comprehend their policies and mitigate potential gaps and vulnerabilities.
