Lydia Lambert and Dan Johnson, Cyber Underwriting, AEGIS London

The cyber insurance sector is experiencing a pivotal stage in its development. Currently, there is an abundance of market capacity and a constant influx of new entrants which has created a competitive, "soft" market where carriers regularly compete over a finite pool of existing clients. This is creating a vicious circle that hinders the market’s enormous long-term potential. It may be beneficial to move beyond simply competing for the same clients and consider ways to broaden the market.

What’s preventing the growth in underpenetrated regions such as Asia?

A key challenge is that the value of cyber insurance is not yet fully recognised in Asia, and there remains a limited awareness of the product itself.

Despite the ever evolving cyber threat landscape, many potential clients in the APAC region are not buying cyber insurance at all, or are considerably underinsured. This issue is two-fold: on one hand, some clients don’t have procedures in place to quantify their risk and therefore are sometimes not buying adequate limits to cover themselves for a major cyber loss. This is compounded by a tendency to see a policy as a "token gesture" rather than an essential purchase for mitigating risk. On the other, there is a fundamental lack of education about what a cyber policy actually covers, leading businesses to conclude they do not need it. It seems a little inconsistent. We always insure our tangible assets like homes, so it’s worth considering why cyber insurance for businesses is not given the same level of attention. This approach limits market expansion, as brokers and insurers concentrate on a narrow group of established, knowledgeable clients.

Unlocking opportunities

Part of the solution is a strategic shift towards developing the much under-penetrated countries within the wider APAC region, excluding more saturated areas like Australia. The genuine growth opportunity lies in territories across the region, which are often compared to where the London cyber market was a decade or more ago. This is a newly developing opportunity ready to be taken, driven by two key factors.

A major catalyst is the rollout of new data protection legislation in many APAC jurisdictions. Compliance with these stringent regulations often necessitates an adequate cyber insurance policy, creating mandatory demand.

The second is a sustained, long-term investment from carriers and market participants. The typical sales cycle for cyber insurance in these emerging markets can extend to 24

months or even longer, which is notably greater than the 12 to 18 month cycle commonly observed in more established markets.

Historically, the sector has sometimes been influenced by a preference for short-term results, prioritising immediate returns. While this approach can appear practical, it may lead to attention and resources shifting back to established markets if newly targeted regions do not show swift business growth. This tendency can perpetuate the ongoing cycle of competition over a limited group of clients, rather than encouraging broader market development and longer-term, sustainable growth.

Beyond financial risk

In order to genuinely encourage growth, it would be helpful for the market to consider addressing some of the significant non-economic challenges.

The underinsurance piece remains paramount, requiring brokers and underwriters to quantify risk to ensure clients buy adequate limits, rather than a nominal figure.

Beyond this, there is a cultural aspect to insurance purchase in Asia. In some cultures, buying insurance can be perceived as acknowledging that something might go wrong, which contradicts a cultural viewpoint of resilience and stability. As such, the education piece must not just cover the technicalities of coverage but must also align the product with local cultural viewpoints on risk and corporate governance, framing it as an essential tool for business continuity rather than an admission of inevitable failure.

To break the vicious cycle of competing over the same clients, the industry should consider pivoting its strategy toward market growth. This means brokers and underwriters, like ourselves, facilitating growth, primarily by investing in educating clients, boardrooms, and executives on the true nature of cyber risk, the specific coverages provided, and the importance of quantifying risk to avoid significant underinsurance.

At AEGIS London, we believe it is important to be part of this conversation which is why we are investing time travelling and networking in the region.

This approach has the potential to deliver long-term value for clients and carriers and, even more importantly, will help to foster greater cyber resilience among the rapidly digitising businesses across Asia-Pacific.

Ends

Dan & Lydia will be based in the APAC region during January and February 2026.