APAC insurers increase cybersecurity investments by 48%

Insurance premiums for cyber policies rose by 70% from 2020 to 2022.

Global insurance companies have increased their cybersecurity budgets by 51% between 2019 and 2023, according to a new survey by Moody's Ratings. 

This surge is driven by the rising frequency of cyberattacks and more stringent regulatory demands, with Asia Pacific (APAC) seeing a 48% increase in spending, reflecting the growing digital adoption in the region, Moody’s “Insurers and asset managers bolster cyber defences amid growing risk, survey shows,” insight.

One key takeaway is that nearly 78% of insurance companies have standalone cyber insurance policies, with coverage being most widespread in the Americas, where 94% of respondents reported having such policies. 

In contrast, only 29% of companies in the APAC region reported the same level of coverage. The types of coverage typically include business interruption, incident response, and ransomware payments.

Cyber insurance premiums have also seen significant increases. Between 2020 and 2022, insurance premiums for cyber policies rose by 70%, with some respondents reporting even higher increases. 

Despite this, almost 85% of insurers plan to maintain their current coverage levels, while a small portion intends to increase their coverage in the coming year.

In response to growing cyber threats, 98% of insurers reported having a multiyear cybersecurity strategy in place, which includes advanced defense practices like vulnerability scans and penetration testing. 

Additionally, insurers are closely monitoring third-party vendors, with 99% requiring cybersecurity assessments of new vendors and 91% conducting ongoing reviews of existing vendors.

As cyber risks continue to evolve, insurers are expected to further enhance their defenses and strategies to manage these risks effectively.