The Asia-Pacific (APAC) region faces a significant surge in cybercrime, driven by rapid digitalization and the widespread adoption of new technologies such as cloud computing, blockchain, and the Internet of Things (IoT). According to Statista research, the global cost of cybercrime is currently estimated at over seven trillion U.S. dollars and is expected to increase steadily. IoT malware attacks alone have recently surpassed 100 million worldwide. In APAC, this issue is particularly pressing as countries like Malaysia, Singapore, and South Korea continue to grapple with increasing cyber threats.
In response to this growing threat, Lexasure Financial Group Limited and OneDegree Global have launched a digital-first cyber insurance platform to enhance cybersecurity measures in South and Southeast Asia. Announced at the ITC Asia conference in Singapore, this initiative aims to provide robust protection for businesses in the region.
The collaboration combines Lexasure’s reinsurance and insurance expertise with OneDegree Global’s (ODG) IXT insurtech and Cymetrics cybersecurity services. The resulting Reinsurance-as-a-Service (RAAS) solution offers a digital experience for insurers and their distribution channels. It covers everything from onboarding and risk profiling to underwriting and policy issuance.
One feature of this platform is its integrated cyber risk exposure scanning solution. This provides real-time security posture scores for prospective clients within a minute. This allows eligible small to medium-sized enterprises (SMEs) to receive policy issuance in under ten minutes.
Ian Lim, CEO of Lexasure, highlighted the critical need for cyber insurance. “These attacks can cause devastating financial losses and irreversible brand damage – highlighting the critical need for cyber insurance,” Lim said. “The real-time risk assessment and near-instant policy issuance for eligible companies is a significant advantage for SMEs and industries.”
“Unprecedented Escalation of Cyber Threats”
Michelle Ip, CEO of OneDegree Global, emphasized the importance of comprehensive coverage for SMEs. “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,” Ip stated.
A Cisco report indicated that 56% of small and mid-sized businesses in the Asia-Pacific region experienced a cyber incident in the past year. Despite this, cyber policies represent less than one percent of the insurance market in the Asian and Oceanic regions. The Lexasure and ODG partnership aims to bridge this gap by offering a scalable and cost-effective RAAS platform. One that provides essential protection for SMEs against cyber threats.
By leveraging technologies like artificial intelligence and machine learning, this new platform enhances businesses’ ability to counteract cyber threats effectively. The goal? Ensuring robust security and comprehensive insurance coverage.
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