Singapore is establishing the world’s first industrial cyber risk pool as a part of efforts to develop the region’s capability to take care of threats from cyberattacks, Finance Minister Heng Swee Keat announced on the fifteenth International Reinsurance Conference in Singapore on Monday (October 29), Channel NewsAsia reported .
“The pool will have a capacity of up to $1 billion and will connect both traditional insurance and insurance-linked securities markets to provide tailored cyber protection,” he said.
“To date, twenty insurance companies have expressed interest in participating in this pool, which would enable ASEAN and Asian businesses to protect themselves against cyber-related losses,” Heng said.
It is estimated that cybercrime will cost the worldwide economy roughly USD 3 trillion in 2015, and this number is predicted to double by 2021. Asia is vulnerable, Heng said. Hackers are 80 percent more prone to goal organizations within the region, yet 60 percent of Asian corporations should not have adequate cyber threat monitoring systems.
So, along with investing in cybersecurity to forestall and deter attacks, higher risk pooling will mitigate the implications of attacks. Singapore previously announced the establishment of a brand new cybersecurity center, the ASEAN-Singapore Cybersecurity Center of Excellence, to deepen the region’s cybersecurity capabilities.
The establishment of the Commercial Cyber Risk Pool follows the 2016 Singapore Cyber Risk Management Project, which goals to create a framework to support robust cyber risk underwriting and cyber risk pricing.
“In insurance terms, insurance coverage for cyber risks remains very low globally due to a lack of historical data and information to support risk assessment, underwriting and pricing. As a result, most policies contain too many exclusions,” Heng said.
He also announced the creation of a brand new platform – Global-Asia Insurance Partnership – which can bring together the worldwide insurance industry, regulatory authorities and academia. The aim is to mix expertise to create revolutionary risk management and insurance solutions.
Source : Channel NewsAsia
