Cyber Threats in Asia: Insights, Risks, and the Insurance Gap
Cyberattacks across Asia are not just rising — they’re accelerating in frequency, scale, and sophistication, disrupting critical industries and exposing deep systemic vulnerabilities.
This growing threat landscape demands urgent attention from both cybersecurity leaders and the insurance industry alike.
The Scale of the Threat:
According to Forescout, in 2023, over 420 million attacks on critical infrastructures were recorded globally, marking a 30% increase compared to 2022. A substantial portion of these attacks occurred in Asia, particularly targeting sectors such as telecommunications, education, information technology, and energy infrastructures.
This regional trend aligns with global data, where 83% of organizations experienced more than one breach in 2023 alone (IBM, 2023).
The Soaring Cost of Cyberattacks:
IBM’s 2023 report indicates that the average cost of a data breach stands at $4.45 million, reflecting a 2.3% rise from the previous year.
This statistic highlights the significant economic impact cyberattacks impose on organizations.
As IBM’s 2023 report notes, the average cost of a data breach now stands at $4.45 million a figure that highlights just how severe the financial toll can be.
As the report puts it: “Cyber insurance is no longer optional — it’s a necessity for operational continuity.”
While the financial impact of a single breach can be devastating, most organizations in Asia remain underinsured — or entirely uninsured — against such events.
The Widening Insurance Gap:
Despite the increasing threats, the proportion of companies with cyber insurance in Asia remains relatively low. In countries like Japan and South Korea, approximately 35% of large companies hold cyber insurance policies, while in India and China, the rate is about 25%. In Southeast Asian nations such as Indonesia, Malaysia, and the Philippines, the insured company rate is below 15%. Factors contributing to this include limited awareness of risks, policy costs, and a lack of understanding of the coverage offered.
Compensation Amounts in Cyber Insurance Claims:
Compensation amounts in cyber insurance claims vary depending on the severity of the incident and the company’s size. On average, claims in Asia range between $500,000 and $3 M, with severe cases reaching $10 M or more. These figures underscore the importance of cyber insurance as a financial safeguard against the economic consequences of attacks.
Who’s Most at Risk?:
Not all industries face the same level of cyber risk. Sectors like healthcare, education and research, finance, technology, and manufacturing are particularly vulnerable due to the sensitive data they hold, the critical services they provide, and their growing reliance on digital and connected technologies.
Emerging Trends and Future Outlook:
Looking ahead, the cyber threat landscape in Asia is expected to evolve rapidly. We anticipate an increase in AI-powered attacks that are more adaptive and harder to detect, a rise in ransomware campaigns specifically targeting small and medium-sized enterprises (SMEs), and a regional push for stricter data protection regulations.
These shifts will require organizations to not only strengthen their cybersecurity strategies but also reassess their insurance coverage in light of emerging risks.
What Comes Next?
The continuous rise in cyber threats in Asia, coupled with the high costs associated with attacks and low insurance coverage, underscores the urgent need to enhance awareness and invest in robust cybersecurity measures and appropriate insurance. Companies and organizations in the region must seriously assess the risks and prepare accordingly to protect their digital and financial assets.
Moving forward, bridging the gap between rising cyber threats and insufficient insurance coverage will require coordinated efforts: smarter risk assessments, broader awareness campaigns, and tailored insurance products. In an increasingly digital Asia, preparedness isn’t optional — it’s essential.
In today’s threat landscape, preparedness isn’t just a strategy — it’s a competitive advantage.
Sheli Bremer-Tchaig, Adv.
Head of Insurance
Cyber Threats in Asia: Insights, Risks, and the Insurance Gap
Cyberattacks across Asia are not just rising — they’re accelerating in frequency, scale, and sophistication, disrupting critical industries and exposing deep systemic vulnerabilities.
This growing threat landscape demands urgent attention from both cybersecurity leaders and the insurance industry alike.
The Scale of the Threat:
According to Forescout, in 2023, over 420 million attacks on critical infrastructures were recorded globally, marking a 30% increase compared to 2022. A substantial portion of these attacks occurred in Asia, particularly targeting sectors such as telecommunications, education, information technology, and energy infrastructures.
This regional trend aligns with global data, where 83% of organizations experienced more than one breach in 2023 alone (IBM, 2023).
The Soaring Cost of Cyberattacks:
IBM’s 2023 report indicates that the average cost of a data breach stands at $4.45 million, reflecting a 2.3% rise from the previous year.
This statistic highlights the significant economic impact cyberattacks impose on organizations.
As IBM’s 2023 report notes, the average cost of a data breach now stands at $4.45 million a figure that highlights just how severe the financial toll can be.
As the report puts it: “Cyber insurance is no longer optional — it’s a necessity for operational continuity.”
While the financial impact of a single breach can be devastating, most organizations in Asia remain underinsured — or entirely uninsured — against such events.
The Widening Insurance Gap:
Despite the increasing threats, the proportion of companies with cyber insurance in Asia remains relatively low. In countries like Japan and South Korea, approximately 35% of large companies hold cyber insurance policies, while in India and China, the rate is about 25%. In Southeast Asian nations such as Indonesia, Malaysia, and the Philippines, the insured company rate is below 15%. Factors contributing to this include limited awareness of risks, policy costs, and a lack of understanding of the coverage offered.
Compensation Amounts in Cyber Insurance Claims:
Compensation amounts in cyber insurance claims vary depending on the severity of the incident and the company’s size. On average, claims in Asia range between $500,000 and $3 M, with severe cases reaching $10 M or more. These figures underscore the importance of cyber insurance as a financial safeguard against the economic consequences of attacks.
Who’s Most at Risk?:
Not all industries face the same level of cyber risk. Sectors like healthcare, education and research, finance, technology, and manufacturing are particularly vulnerable due to the sensitive data they hold, the critical services they provide, and their growing reliance on digital and connected technologies.
Emerging Trends and Future Outlook:
Looking ahead, the cyber threat landscape in Asia is expected to evolve rapidly. We anticipate an increase in AI-powered attacks that are more adaptive and harder to detect, a rise in ransomware campaigns specifically targeting small and medium-sized enterprises (SMEs), and a regional push for stricter data protection regulations.
These shifts will require organizations to not only strengthen their cybersecurity strategies but also reassess their insurance coverage in light of emerging risks.
What Comes Next?
The continuous rise in cyber threats in Asia, coupled with the high costs associated with attacks and low insurance coverage, underscores the urgent need to enhance awareness and invest in robust cybersecurity measures and appropriate insurance. Companies and organizations in the region must seriously assess the risks and prepare accordingly to protect their digital and financial assets.
Moving forward, bridging the gap between rising cyber threats and insufficient insurance coverage will require coordinated efforts: smarter risk assessments, broader awareness campaigns, and tailored insurance products. In an increasingly digital Asia, preparedness isn’t optional — it’s essential.
In today’s threat landscape, preparedness isn’t just a strategy — it’s a competitive advantage.
Sheli Bremer-Tchaig, Adv.
Head of Insurance