WTW launches CyCore Asia for enhanced cyber coverage

WTW has unveiled CyCore Asia, a cyber insurance facility designed to cater to the needs of businesses in Singapore and Hong Kong, offering significant insurance capacity and assistance in managing cyber risks.

The facility, underwritten by QBE Insurance Group and AXA XL, provides primary insurance capacity of up to USD $15,000,000. It aims to address the evolving concerns of cyber security within organisations in these regions.

A recent WTW Emerging and Interconnected Risk survey indicates that technology is a major concern in emerging risks for companies in Asia, with cyber risks being a significant factor in their anticipated changes over the next decade. Artificial intelligence (AI) is noted as a contributor to the magnitude and complexity of cyber threats.

Luke Ware, Head of Corporate Risk & Broking, Asia, at WTW, stated, "The advancement of cyber threats from the use of AI and poorly developed or inadequately governed AI solutions were major concerns of companies. The expanding use of AI for malicious purposes could lead to an increase in the frequency and severity of cyber incidents."

He further emphasised the need for a comprehensive understanding of new technologies, especially as businesses in Asia adopt innovations such as generative AI, highlighting the importance of understanding policy details to ensure smooth recovery from cyber incidents.

Conor Keating, Cyber Growth Leader, Asia, at WTW, stressed the importance of collaboration between IT security teams and the cyber insurance sector, saying, "As cyber threats continue to evolve, ongoing collaboration between IT security teams and the cyber insurance industry in Asia is imperative to ensure businesses can navigate the complex cyber risk landscape with greater confidence."

Keating explained that CyCore Asia provides broader policy benefits not typically available on the open market. Clients can engage with leading cyber security consultants for pre-loss services and assessments, which fosters enhanced cooperation and involvement from the insurance market.

CyCore Asia offers several key features. It includes proprietary wording developed with industry expertise for comprehensive cyber coverage. Additionally, a risk bursary is provided, allowing insureds to receive cyber risk management services from specialist consultants at S-RM, capped at USD $15,000.

The facility also includes a 'restore function,' permitting businesses to maintain continuous coverage throughout the policy period, subject to insurer acceptance and review.

"As companies in Asia increase their reliance on new technologies to generate growth and automate production, business processes are opening up new threats and vulnerabilities. Companies must prepare for the next inevitable outage as cyber risks evolve. With insurance coverage, proactive risk management and a clear recovery plan, organisations can navigate outages with minimal disruptions and emerge more resilient to meet their critical operational requirements," Conor Keating noted.

Initially, CyCore Asia is available for businesses across various industries in Singapore and Hong Kong, with plans to extend to other markets in Asia later in the year.