Lexasure Financial Group Limited and OneDegree Global have partnered to unveil a new cyber insurance platform for businesses in South and Southeast Asia.
The offering is is driven by the need to address increasing cyber threats faced by businesses in Asia.
This alliance combines their cyber risk assessment strengths and technologies to deliver a Reinsurance-as-a-Service (RAAS) solution for cyber insurance.
The platform enables insurers and their distribution channels to offer a fully digital and seamless customer experience, encompassing onboarding, risk profiling, straight-through underwriting, and policy issuance.
The newly launched RAAS platform integrates an advanced cyber risk exposure scanning solution into the underwriting process.
This integration significantly enhances technology risk assessment by generating a prospect’s real-time security posture score within a minute.
The platform offers a hassle-free onboarding experience with instant policy issuance in under 10 minutes for eligible small-to-medium-sized enterprises (SMEs).
The partnership’s primary goal is to provide SMEs with a robust cyber insurance solution that meets their specific needs.
The RAAS platform is designed to be scalable and cost-effective, allowing businesses to manage cyber risks without the need to invest in their own reinsurance infrastructure. The collaboration aims to bridge the gap in cyber insurance coverage, which is currently less than one percent of the insurance market in the Asian and Oceanic regions.
According to a Cisco report, 56% of Asian Pacific small and mid-sized businesses experienced a cyber incident in the past year. Despite this high incidence, cyber policies represent less than one percent of the insurance market in these regions, as per the IAIS’ Global Insurance Market Report 2023.
With most small- and mid-sized companies planning to increase cyber insurance spending, the RAAS platform addresses potential coverage gaps, ensuring comprehensive protection against various cyber threats.
Ian Lim, CEO of Lexasure, said, “With increased digitisation, Asian businesses are increasingly vulnerable to cyberattacks and ransomware. These attacks can cause devastating financial losses and irreversible brand damage – highlighting the critical need for cyber insurance.”
“The real-time risk assessment in such a complex field and near-instant policy issuance for eligible companies is a significant advantage and is optimised for the needs of small and medium enterprises and industries. By combining ODG’s assessment solutions with our platform’s ongoing innovations for digital reinsurance, the RAAS platform delivers a scalable and cost-effective way to manage risk without investing in their own reinsurance infrastructure.”
Michelle Ip, CEO of OneDegree Global, added, “As digital technology continues to permeate every aspect of our lives, the digital domain is facing an unprecedented escalation of cyber threats. Particularly for small and mid-sized companies, they are confronted with a critical challenge where a significant portion of cyber risks remains uninsured or underinsured.”
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