MAS to promote growth in emerging cyber risk insurance business

As part of efforts to grow Singapore into a global insurance marketplace by 2020, the Monetary Authority of Singapore (MAS) will promote growth in emerging business lines such as cyber risks.

MAS managing director Ravi Menon said on Wednesday that a lack of data is a key hurdle for cyber insurance in Asia.

"MAS is working with the industry to create a test-bed for cyber risks, where insurers and potential clients can come together to simulate loss events," he said, at a reinsurance conference at Marina Bay Sands.

"Cyber insurers will be able to generate sets of valuable loss data and raise awareness about the value of specialty cyber insurance cover."

Meanwhile, clients will get the opportunity to stress-test their systems, assess the responsiveness of existing coverage to losses, and understand potential losses and the need for cyber insurance cover, he said.

The MAS will also seek to increase the depth of expertise in Singapore by continuing to work with existing players to build up their specialty and reinsurance underwriting and broking capabilities as well as expand their regional hubs, Mr Menon added.