Singapore to establish US$1 billion cyber risk pool

October 30 2018 by InsuranceAsia News Staff

Singapore’s finance minister Heng Swee Keat said the country is helping set-up the world’s first commercial cyber risk pool.

The pool will commit up to US$1 billion in capacity, and bring together both traditional insurance and insurance-linked securities markets to provide bespoke cyber coverage.

Speaking at the 15th Singapore International Reinsurance Conference on 29 October, Heng said there had been a healthy amount of interest in the scheme: “20 insurance firms have indicated their interest to participate in this pool, which would allow corporates in Aseans and Asia to be protected against cyber-related losses.”

Cybercrime was estimated to cost the global economy about US$3 trillion in 2015, a figure that is expected to double by 2021.

Heng said hackers are 80% more likely to target organisations in the region, yet 60% of Asian companies don’t have sufficient monitoring systems.