Cyber Insurance trends coming on shore
- Rayvern Chng
- Oct 8, 2023
- 2 min read
The world of cyber insurance is rapidly evolving, with significant changes being observed in 20231. These changes are not only transforming the cyber insurance landscape but are also prompting unprecedented shifts in cybersecurity investment, particularly at the Small and Medium-sized Business (SMB) level
Global Cyber Insurance Trends
Pricing Surge Slows Down: The pricing surge for cyber insurance has slowed in 2023, particularly in the U.S. However, the requirements for obtaining a policy have become more stringent, with questionnaires growing in size and complexity.
Increasing Cybersecurity Requirements: To obtain cyber insurance, many SMBs are now required to invest in an array of security capabilities that they’ve never been forced to implement before1. These include multi-factor authentication (MFA) and endpoint detection and response (EDR).
SMBs Need It More Than Ever: The escalating need for SMBs to obtain cyber insurance is coming from multiple directions1. Increasingly, smaller businesses are being hit with ransomware and other crippling cyberattacks1.
Insurance Taking Over Compliance Space: When it comes to cybersecurity requirements placed on businesses, "insurance is taking over the entire compliance space in many ways".
Goal is to Become Insurable: For many organizations right now, "the goal is to become insurable"
Impact on Singapore Market
The Singapore market has been responsive to the evolving landscape of cyber insurance. In 2018, the Singaporean government announced the launch of the world’s first commercial cyber risk facility, committing up to USD 1 billion of cyber insurance to protect corporate buyers in Asia against cyber-related losses2.
The insurance technology market in Singapore is slowly evolving and is slated to become a USD 1.1 billion industry by 2023. This growth is driven by advancements in analytics and artificial intelligence (AI), which aid in data collection and intelligence support for risk assessment, underwriting, and pricing.
As global trends continue to shape the cyber insurance landscape, it’s expected that these will also influence the Singapore market:
Increased Adoption by SMBs: Given the escalating need for SMBs to obtain cyber insurance globally, it’s likely that SMBs in Singapore will follow suit. In fact, more SMBs in Singapore are already seeing cyber insurance as a viable option3.
Stricter Cybersecurity Requirements: As global insurers impose stricter cybersecurity requirements1, insurers in Singapore may also begin demanding more robust cybersecurity measures from their policyholders.
Focus on Becoming Insurable: With organizations globally striving to become insurable, companies in Singapore may also prioritize meeting the cybersecurity requirements necessary for obtaining cyber insurance.
In conclusion, as global trends continue to shape the future of cyber insurance, it’s crucial for businesses in Singapore to stay informed and prepared. By understanding these trends and their potential impact, businesses can make informed decisions about their cybersecurity strategies and insurance needs.
Contact me if you need to look at getting a cyber security insurance.
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