Lexasure, OneDegree Launch Cyber Insurance for Asia-Pacific SMEs

Lexasure Financial Group Limited (Lexasure), a specialist in reinsurance, insurance, and insurtech solutions across South and Southeast Asia, has recently announced a strategic collaboration with OneDegree Global (ODG). ODG is the technology division of OneDegree Group, recognized for its cutting-edge IXT insurtech solutions and Cymetrics cybersecurity services. Together, they have launched an innovative cyber insurance solution, first showcased at the ITC Asia conference in Singapore, held from June 4 to 6, 2024. The unveiling of this new product marks a significant advancement in addressing the growing cybersecurity concerns that Asian businesses face amid ongoing digitization efforts. At the heart of this initiative is a Reinsurance-as-a-Service (RAAS) platform, which leverages advanced technology to provide real-time risk assessment and nearly instant policy issuance, specifically tailored for small and medium enterprises (SMEs).

A New Era of Cyber Insurance

The core feature of this new cyber insurance solution is its RAAS platform, noted for its advanced cyber risk assessment capabilities. This potent tool is particularly vital for SMEs in the Asia-Pacific region, which have increasingly become targets for cyberattacks and ransomware due to their rapid digitization. Ian Lim, Lexasure’s CEO, stressed the considerable financial and reputational damages that businesses face from such cyber threats, making cyber insurance an essential safeguard. The RAAS platform operates by offering real-time risk assessments coupled with instant policy issuance, streamlining what has traditionally been a cumbersome and slow process. This is achieved via a sophisticated cyber risk exposure scanning mechanism integrated into the underwriting workflow, allowing insurers to generate a company’s security score on the spot. For eligible businesses, this enables policy issuance within just 10 minutes.

This digital transformation is particularly significant given the current landscape of cyber threats in the region. According to a report by Cisco, 56 percent of small and mid-sized enterprises in the Asia-Pacific region have experienced a cyber incident in the past year. Despite this high incidence rate, the cyber insurance market remains underdeveloped, with cyber policies accounting for less than one percent of the total insurance market in Asia and Oceania, as per the IAIS’ Global Insurance Market Report 2023. This disparity underscores the urgent need for a more robust cyber insurance framework, which the RAAS platform aims to address by making comprehensive policies more accessible and easier to manage for SMEs.

Addressing Underinsured Risks

Michelle Ip, CEO of OneDegree Global, shed light on the substantial risks small and mid-sized enterprises face from cyber threats, often resulting in significant uninsured or underinsured losses. These gaps in coverage can include vulnerabilities such as compromised emails or ransomware attacks, which can be financially crippling for SMEs. The new cyber insurance solution from Lexasure and ODG is designed to help businesses better understand their coverage and mitigate potential gaps. Through real-time security assessments, SMEs can gain insights into their vulnerabilities and take proactive measures to strengthen their defenses.

Additionally, the RAAS platform enhances the customer experience by digitalizing every step of the insurance process, from onboarding to policy issuance. Insurers and their distribution channels can now offer a fully digital and streamlined service, significantly reducing the time and complexity traditionally involved in procuring cyber insurance. This advancement is poised to boost the adoption rate of cyber insurance among SMEs, fostering a more resilient business environment in the region.

Bridging the Insurance Gap

Michelle Ip, CEO of OneDegree Global, highlighted the severe risks that small and mid-sized enterprises (SMEs) face from cyber threats, which often lead to substantial uninsured or underinsured losses. These coverage gaps can include threats like compromised emails and ransomware attacks, which can financially devastate SMEs. Lexasure and ODG’s new cyber insurance solution aims to help businesses better understand their coverage and address potential gaps. With real-time security assessments, SMEs can identify their vulnerabilities and take proactive steps to bolster their defenses.

Moreover, the RAAS platform significantly enhances the customer experience by digitalizing every part of the insurance process, from onboarding to policy issuance. Insurers and their distribution channels can now offer a fully digital and streamlined service, substantially reducing the time and complexity typically involved in acquiring cyber insurance. This innovative approach is expected to increase the adoption rate of cyber insurance among SMEs, thereby promoting a more resilient business environment in the region.

Explore more

Trend Analysis: Mobile-First Digital Connectivity

Did you know that over 5.64 billion people—nearly 68.7% of the global population—are now connected to the internet, with mobile devices powering the vast majority of this access, painting a vivid picture of a world where digital interaction begins with a smartphone in hand? Mobile-first connectivity has become the cornerstone of modern behavior, influencing how individuals communicate, consume content, and

Navigating Global Payroll Compliance: Challenges and Trust

Introduction Imagine a multinational corporation with employees spread across five continents, each expecting their paycheck to reflect local tax laws, benefits, and currency regulations accurately, without any errors that could disrupt their financial stability. A single misstep in payroll compliance could lead to hefty fines, legal battles, or, worse, a loss of trust from the very workforce that drives the

How Is Agentic AI Transforming Wealth Management Today?

The wealth management industry stands at a pivotal moment, where the integration of agentic AI is not just an innovation but a revolution in how financial services are conceptualized and delivered. This advanced technology, powered by multi-agent frameworks, is redefining the landscape of financial advisory, portfolio management, and investment strategies with an unprecedented level of personalization and efficiency. Unlike traditional

How Will Jeel and Synpulse Transform Saudi Wealth Management?

As Saudi Arabia’s financial sector undergoes a remarkable transformation, wealth management stands out as a critical driver of innovation and economic growth. Today, we’re thrilled to sit down with a leading expert in financial technology to discuss a groundbreaking partnership between Jeel, powered by Riyadh Bank, and Synpulse. This collaboration aims to revolutionize wealth management in the Kingdom through a

Why Is Observability Crucial for Modern DevOps Success?

I’m thrilled to sit down with Dominic Jainy, an IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain has positioned him as a thought leader in cutting-edge technology. Today, we’re diving into the world of observability in modern DevOps, a critical area where Dominic’s insights shine. With a passion for leveraging innovative tools and practices, he’s here