Lexasure Financial Group Limited, a company specializing in reinsurance, insurance, and insurtech solutions, has partnered with OneDegree Global (ODG) – the sister company of Hong Kong's highest-earning digital insurer in 2024 – to launch a new digital cyber insurance platform.
The announcement was made at the ITC Asia conference in Singapore. According to Lexasure, the platform is designed to address the growing cybersecurity threats in South and Southeast Asia. The partnership seeks to leverage their combined expertise to offer a Reinsurance-as-a-Service (RAAS) solution for cyber insurance. This platform delivers a fully digital experience for insurers and their distribution channels, encompassing onboarding, risk profiling, underwriting, and policy issuance.
The platform incorporates an advanced cyber risk exposure scanning solution into the underwriting process, which evaluates a prospect’s security posture in real time and generates a score within a minute. This technology streamlines onboarding, allowing policy issuance for eligible small and medium-sized enterprises (SMEs) in less than 10 minutes.
“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,” said Lexasure CEO Ian Lim. He added that the real-time risk assessment and quick policy issuance provide significant benefits, especially for SMEs.
“The real-time risk assessment in such a complex field and near-instant policy issuance for eligible companies is a significant advantage and is optimized 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”, he said.
An April report by active insurance provider Coalition found that over half (56%) of all cyber claims in 2023 were due to funds transfer fraud or business email compromise. The report also highlighted increased vulnerabilities linked to specific network security devices. In Hong Kong, SMEs reported a notable rise in cybersecurity incidents, with the rate of cyber events increasing from 24% in 2023 to 30% in 2024, according to QBE Hong Kong.