Pandamatics Underwriting, with the support of Lloyd’s of London syndicate Hiscox, has launched the Asia’s first pure cyber-insurance coverholder, which will provide coverage of up to US$5 million across a range of industries and cover the full spectrum of cyber-risks, from human error to cyber-attacks, financial losses and reputational damage.
Policyholders will have access to cyber-incident response through a strategic partnership with Blackpanda, an Asia-based digital forensics and cyber-incident response firm with an experienced team of risk and cyber-security experts from international special forces, intelligence, digital forensics and law enforcement backgrounds.
Pandamatics, which decided to first launch its services in Hong Kong where it is based and has obtained regulatory approval from the Insurance Authority of Hong Kong, plans to establish an additional hub in Singapore later this year.
“While many insurers provide elements of cyber-insurance coverage under other policy types and extensions, we understand that cyber-security poses an existential risk to modern businesses that must be addressed directly, through comprehensive coverage and holistic cyber-risk management solutions,” says Struan Todd, vice-president of underwriting at Pandamatics. “Across the region in recent years, we have seen increasing awareness of the need to keep data secure, and the importance of efficient incident response in the event of a breach.”
Asia’s cyber-insurance market is predicted to experience robust growth in the coming years. According to the 2020 Mordor Intelligence report, the global cyber-insurance market is expected to grow from US$7.36 billion in 2020 to US$27.83 billion by 2025 with a compound annual growth rate (CAGR) of 24.30%. And reports from CyrRiM and KBV Research expect the Asian cyber-insurance market to experience the fastest regional growth at 35.5% CAGR, reaching up to US$1 billion by 2025.