With the demand for insurance against cyberattacks growing in recent years, the Monetary Authority of Singapore (MAS) is working with industry players and academics to beef up expertise to underwrite such risks, said Second Finance Minister Lawrence Wong yesterday.
Speaking at a dinner commemorating the General Insurance Association’s 50th anniversary, he said work has begun to standardise policy definitions, gather data on cyber loss and better understand insurers’ exposure to cyber risk. Enhancing the relevance of insurance coverage is also being worked on, he said. A project doing research on cyber-risk management and the building of databases, models and analytics to support the growth of a cyber-insurance marketplace is also under way. The risk and cost of cyberattacks against businesses and consumers have risen as digital and mobile applications are more widely used, yet new risks are still not well understood and many businesses are uninsured or inadequately covered by traditional insurance, Mr Wong added.
This presents a “huge market opportunity”, said Mr Wong, citing how cyber insurance premiums have grown at a compound annual growth rate of 38 per cent globally over the last five years and is projected to reach US$7.5 billion (S$10 billion) by 2020. The cyber security market in Asia-Pacific is projected to grow by more than 15 per cent per annum from 2014 to 2019, he added.