AIG: Demand for Cyber Insurance in Singapore to Grow by 50% in 2016

Singapore looks to take charge globally in the cyber insurance scene as the country’s industry looks to grow as much as 50 percent within the coming year. With this growth, however, experts warn that Singapore may develop a “target on its back” as the country continues to flex its expertise in the cyber realm. AIG Singapore reports that there has been a significant increase of inquiries in regards to cybersecurity, and predicts that the number of insured companies will climb from 9 percent as of this year to 40 percent by 2020. The company further predicts a continued strong demand for insurance from finance and technology and an increase in demand from the healthcare industry, especially in light of recent and numerous attacks on hospitals internationally. “Not only do data leaks result in financial losses including compensation payouts and regulatory investigation, but reputational damage and loss of consumer confidence can also have a long-term impact on a company’s bottom line,” said Ms. Lai Yen Yen, head of financial lines for AIG Singapore, and that “While cyber-attacks grow in size, volume and sophistication, defensive methods and technologies have not seen a corresponding evolution, potentially costing businesses millions in the event of a cyber breach.” Though cyber-attacks do continue to grow in danger, Singapore is taking the right steps toward mitigating those dangers in the future.