Cyber Insurance in APAC: Market & Claims

The Asia-Pacific (APAC) cyber insurance market is experiencing robust growth, driven by escalating cyber threats and regulatory pressures. According to Aon’s 2025 Cyber Risk Report, cyber insurance claims in APAC rose 22% in 2024, with social engineering and fraud claims surging by 233%, largely due to a 53% increase in AI-driven deepfake attacks.

Cyber incident frequency grew 29% year-on-year and 134% since 2020, reflecting heightened risks from ransomware, malware, and geopolitical tensions. This report examines the APAC cyber insurance market’s dynamics, claims trends, and regional variations across key markets—China, Hong Kong, Singapore, Japan, and India and analysis of 1,414 global cyber incidents.

It highlights how insurers are adapting to rising claims and emerging risks, positioning cyber insurance as a critical tool for businesses in a high-risk digital landscape.

Cyber Insurance

APAC Cyber Insurance Market Overview

The global cyber insurance market reached USD 16.4 billion in 2023 and is projected to grow to USD 29 billion by 2027 at a 20.5% CAGR, with APAC contributing 8% of global premiums (USD 1.31 billion) in 2024, per Munich Re and Global Market Insights. APAC’s market is driven by:

• Rising Cyber Threats: 29% year-on-year increase in cyber incidents, with 134% growth since 2020, fueled by ransomware, phishing, and deepfake attacks.

• AI-Driven Attacks: A 53% rise in deepfake-related social engineering incidents, such as a Hong Kong case where a USD 25.6 million transfer was induced via an AI-generated video call.

• Regulatory Pressures: Stricter regulations, like China’s Personal Information Protection Law (PIPL) and the EU’s NIS2 Directive (effective October 2024), mandate robust cybersecurity, boosting demand.

• Digital Transformation: 80% mobile penetration and cloud-based platforms in APAC enhance insurance accessibility, per Allied Market Research.

• Geopolitical Risks: 63% of suspected nation-state cyber operations originate in APAC, per the Council on Foreign Relations, amplifying corporate risk exposure.

Challenges include high premiums (USD 5,000–50,000 annually for SMEs), claim denials due to non-compliance (e.g., unapproved vendors, 2% of claims), and reputational damage, which is non-insurable and causes an average 27% shareholder value decline.

Claims Trends in 2024

Aon’s 2025 report, analyzing 1,414 global cyber incidents, highlights key APAC claims trends:

• Claims Surge: 22% increase in claims notifications, with 776 incidents (31% rise) involving ransomware, business interruption, and regulatory issues.

• Social Engineering and Fraud: 233% surge in claims, driven by a 53% increase in deepfake attacks, such as CEO fraud via AI-generated media.

• Ransomware and Malware: Account for 60% of reputation-related claims globally, with 45% of total cyber incidents. Average ransomware loss is USD 292,000, though payments dropped 77% in 2024 due to stronger cybersecurity.

• Reputational Damage: Of 1,414 incidents, 56 caused reputational losses, leading to a 27% average decline in shareholder value, particularly in healthcare and financial services.

• Data Breaches: Average cost reached USD 4.88 million, with 71% of losses covered by insurance (44% insurer payments, 27% insured retention).

Regional Comparison of APAC Cyber Insurance Markets

The APAC cyber insurance market varies significantly across China, Hong Kong, Singapore, Japan, and India, driven by economic maturity, regulatory frameworks, and cyber risk exposure.

Metric	China	Hong Kong	Singapore	Japan	India
Market Size (2024, USD M)	600	150	200	250	100
CAGR (2024–2030)	25%	15%	18%	12%	20%
Cyber Incident Frequency (2024)	35% YoY	28% YoY	25% YoY	20% YoY	40% YoY
Claims Frequency (2024)	25%	20%	18%	15%	22%
Top Claims Types	Ransomware (30%), BEC (25%)	Deepfake fraud (35%), Ransomware (20%)	Social engineering (30%), Data breach (25%)	Ransomware (25%), Data breach (20%)	Phishing (35%), Ransomware (30%)
Key Products	Cyber liability, Data breach	Cyber, CISO liability	Regulatory defense, Crisis PR	Business interruption, Data breach	Data breach, Ransomware coverage
Key Drivers	PIPL, digital economy ($2.1T)	Financial hub, deepfake risks	Digitalization (80%), regulatory compliance	Seismic risk, corporate demand	SME growth, IRDAI mandates
Challenges	Regulatory complexity, data gaps	High premiums, awareness gaps	Cost sensitivity, competition	Market saturation, awareness (30%)	Awareness (25%), infrastructure
Dominant Insurers	Ping An, China Re, AIG	AIA, Chubb, Zurich	Aon, Allianz, AXA	Tokio Marine, Sompo, Munich Re	ICICI Lombard, HDFC ERGO

Notes:

• Market Size: Estimated based on APAC’s USD 1.31B share (8% of global USD 16.4B), allocated by country contribution, per Munich Re and GlobalData.

• CAGR: Derived from industry forecasts (e.g., China 25%, India 20%, Singapore 18%, Hong Kong 15%, Japan 12%).

• Incident/Claims Frequency: Based on Aon’s 29% YoY incident increase and 22% claims rise, adjusted for regional trends.

• Claims Types/Products: Sourced from Aon, Munich Re, and regional insurer reports.

• Drivers/Challenges: Compiled from Aon, Marsh, and regulatory data.

Analysis of Regional Differences

• China: The largest market (USD 600M) grows rapidly due to the PIPL and a $2.1T digital economy. Ransomware (30%) and BEC (25%) dominate claims, but regulatory complexity and rural data gaps challenge growth. Insurers like Ping An leverage AI underwriting.

• Hong Kong: A USD 150M market faces deepfake fraud (35%), highlighted by a USD 25.6M AI-driven scam in 2024. Financial hub status and HKRBC compliance drive demand, but high premiums limit SME adoption.

• Singapore: USD 200M market benefits from 80% digital penetration and regulatory defense products. Social engineering (30%) claims rise, but competition from Aon and AXA pressures margins.

• Japan: USD 250M market grows slowly (12% CAGR) due to saturation. Ransomware (25%) claims align with seismic risks, but low awareness (30%) hinders uptake.

• India: USD 100M market sees 40% YoY incident growth, driven by SMEs and IRDAI mandates. Phishing (35%) dominates, but infrastructure gaps pose challenges.

Outlook and Implications

The APAC cyber insurance market, with a 22% claims surge and 233% increase in social engineering fraud, reflects the region’s growing exposure to AI-driven threats like deepfakes and ransomware, which drive 60% of reputational claims and 27% shareholder value declines.

With a projected USD 29 billion global market by 2027, APAC’s 25% CAGR signals untapped potential, particularly in China and India. Insurers are adopting AI-driven underwriting and crisis PR coverage, but challenges like high premiums and non-insurable reputational risks persist. As geopolitical tensions and regulatory pressures (e.g., NIS2, PIPL) intensify, proactive cyber risk management and insurance will be critical for APAC businesses.

Consult Everbright Actuarial Consulting for Expert Guidance

To navigate the complexities of cyber insurance in APAC or tailor coverage to your business needs, contact Everbright Actuarial Consulting at info@ebactuary.com . Our team offers customized risk assessments, claims support, and strategic insights to protect against evolving cyber threats. Reach out for consultations or resources to enhance your cybersecurity resilience.