Gallagher Re says polling at its Asia-Pacific cyber summit in Singapore found 94% of participants see insureds seeking cheaper rather than broader coverage, underscoring the competitive environment and the need to demonstrate value to policyholders.

While cyber is increasingly a mainstream business line, discussions highlighted significant protection gaps, particularly among SMEs, creating opportunities for future market expansion, according to the reinsurance broker.

Head of cyber for APAC Carlos Grijalva says conversations reinforced that the region remains one of the most exciting growth markets for cyber insurance and reinsurance.

“While emerging risks such as AI and digital infrastructure are reshaping the landscape, they are also creating new opportunities for our industry to innovate,” he said.

“The challenge ahead is not simply managing risk, but working together to close the protection gap and help organisations strengthen resilience in an environment defined by constant technological and geopolitical change.”

Nearly 100 participants attended the event at the Fullerton Hotel in June, with the audience comprising about 50% insurers, 40% reinsurers and 10% cyber and industry service providers.

Audience polling showed participants viewed the soft market and customer demand as the two biggest obstacles to cyber and AI-related growth, ahead of accumulation management concerns and capability needs.

“Capacity is increasingly available across the market,” Mr Grijalva said. “The bigger opportunity now is helping more organisations understand their cyber exposures, recognise the value of protection, and access solutions that meet their evolving needs.”

When asked to identify the most concerning risk facing their region this year, participants ranked cyber incidents first (37%), followed by AI (33%).

Political risk and violence, natural catastrophes, regulatory change, business interruption and macroeconomic developments were viewed as secondary concerns.