It’s time for a decade of cyber in Asia, says Swiss Re

The cyber re/insurance market is at a crossroads, particularly in Asia-Pacific, where a potent mix of high demand and significant protection gaps is driving rapid change. Giv Kahrom, Swiss Re’s head of cyber for Asia, gave SIRC Today a succinct snapshot of this change and what lies ahead.

“We expect growth,” he said. “With around 70 percent of the global premium currently coming from the US, we see this shifting. Asia-Pacific and Continental Europe show enormous potential, and the pie chart will certainly change.”

Kahrom described Asia-Pacific as a region where cyber insurance is still in its infancy, but with a promising trajectory. “Globally, we’re looking at a $15.5 billion market, with growth slowing to around 8 percent,” he explained. 

“In Asia-Pacific, however, we’re at $1.2 to $1.3 billion, and the growth rate is much higher, comfortably in double digits.” These figures highlight a market poised for expansion, even as challenges remain.

One of the most pressing issues is the protection gap, particularly among small and mid-sized businesses. “We’re dealing with a massive gap,” Kahrom noted. “Around 90 percent of these sectors are not buying cyber insurance. But the region is steadily developing more capabilities, which are crucial to bridging this divide.” 

Systemic risk continues to dominate discussions around cyber insurance. “Handling systemic risk is still one of the biggest challenges for reinsurers,” he said. He referenced high-profile events such as July’s CrowdStrike outage and the MOVEit data breach in 2023, pointing out that data breach accumulation from such incidents means that there are high complexities in the current threat landscape. 

“We have to satisfy local demands and understand local needs.”

“At Swiss Re, we’re investing in people—modellers, actuaries, and data specialists—all dedicated to understanding and mitigating these risks,” Kahrom said, highlighting the company’s commitment to robust solutions.

Local nuances

A major theme in Kahrom’s analysis is the need for a deeply localised approach to cyber insurance. “We have to satisfy local demands and understand local needs,” he emphasised. 

“Asia is extremely diverse, and only by understanding these nuances can we contribute to a sustainable market.” This isn’t just about products but about addressing the unique characteristics of each country.

Kahrom is enthusiastic about the opportunities for technological advancements in underwriting. “Cyber is a data-rich line of business. Using technology in underwriting can help us be more accurate, reduce risk, and understand threats better,” he asserted. This technological edge, he argues, could propel the market forward and make it more resilient.

Certain countries stand out in the region’s growth narrative. “Japan and Australia are already mature markets,” Kahrom said, but it is in the emerging economies that he sees the most striking developments. “India, for example, has gone from having almost no cyber insurance market five years ago to $100 million today.

“We expect similar growth in Southeast Asia, China, and Korea,” he predicted.

Closing with a forward-looking message, Kahrom articulated Swiss Re’s strategy. “We’re a long-term player in this market,” he said. “We want to help companies and societies build cyber resilience and support sustainable growth. Our investments in people, technology, and regional strategies are all part of this commitment.

“The US market had a steep growth in the past, but we see this to be the decade of cyber in Asia,” he concluded.

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