Fitch Ratings, a leading global research and rating firm, has projected that cyber reinsurance would help drive growth in sundry Asia Pacific (APAC) region’s economies in the 2021 year as more companies embrace re-insurance policy options to protect their investment
The APAC region was reported to have accounted for 7% of the total global ransomware incidents reported in 2020.
Fitch, in its latest report, noted that several Asian markets had developed regulations to reflect the increased focus on cyber resilience, such as India’s Personal Data Protection Bill 2019.
The regulation is aimed at creating guidelines around the management of personal data, including an individual’s personal information rights.
According to the ratings firm, a company may have to pay a penalty of up to $2.1 million, or 4% of total revenue, if found violating norms pertaining to the processing or transferring of personal data under the Personal Data Protection Bill.
The report further noted how Singapore had also proposed a cyber security bill that mandates organizations to ensure compliance with its provisions when enacted.
A report by Reinsurance News on the Fitch report findings stated: “It’s believed these regulatory developments could increase cyber reinsurance demand as companies will have more concerns over the mitigation of higher potential loss, not only from the business disruption but also from the regulator penalties for cyber incidents.
“Furthermore, some of the regulatory requirements for reporting any ransomware attacks will provide data transparency and historical loss records for reinsurers, which will enable them to quantify it in pricing and protection coverage”, the online medium added.
