The cyber reinsurance prospects show potential for a raging growth in the Asia Pacific (APAC) region has been highlighted in a new report from Fitch Ratings. The generated report indicates that cyber reinsurance has a major hand in contributing to this growth.
Cyber Reinsurance in APAC
The year 2020 marked 7% of the world’s reported ransomware incidents in the APAC region.
Fitch also pointed out that that several Asian markets have established regulatory rules that largely focus on cyber resilience. One such example is India’s Personal Data Protection Bill, 2019.
The regulation is targeting creating strategies that revolve around the management of personal data which is inclusive of the personal information rights of every individual.
If any organizational entity is found to be violating the norms relating to the processing or transmission of personal data, they are liable to pay a penalty of around $2.1 million (or 4% of the total revenue generated). The norms set by the Personal Data Protection Bill are stringently mandatory.
Singapore has proposed a precise cyber security bill that decrees organizations to be wary of the protection of personal data transmission in a similar fashion.
These regulatory developments could maximize cyber reinsurance demand as companies will have an excess of apprehensions over the vindication of the higher potential loss. These vindications will not only be birthed from the disruption of business but also the regulator penalizations for cyber incidences.
Additionally, some of the regulatory necessities for reporting any ransomware outbreaks will offer data transparency and historic loss records for reinsurers. This will in turn permit reinsurers to enumerate it in protection handling and pricing.