Escalating geopolitical tensions are reshaping the risk landscape for businesses in Southeast Asia and Hong Kong, placing CFOs at the forefront of a new era of uncertainty.
A GlobalData poll reveals that cyber insurance is now the most in-demand insurance product, with 27.4% of industry insiders believing it will see the highest increase in demand.
This surge is driven by the increasing frequency and sophistication of cyberattacks stemming from geopolitical conflicts, surpassing traditional concerns like political risk and supply chain disruptions.
"The ongoing conflict between Russia and Ukraine has expanded from conventional battlegrounds into coordinated cyber operations aimed at critical infrastructure and corporate networks," notes Charlie Hutcherson, insurance analyst at GlobalData.
This, coupled with rising unrest in the Middle East, has led to a surge in state-sponsored and hybrid cyberattacks, creating a complex web of digital threats.
CFOs must recognise that cyber incidents are no longer isolated events but can originate from geopolitical escalations. These threats can disrupt supply chains, weaken operational resilience, and significantly damage reputations. As a result, cyber insurance is emerging as a core strategic risk transfer solution.
However, navigating the cyber insurance market requires a proactive approach. Insurers are facing growing demand for clearer coverage and more active support for resilience, including real-time threat monitoring and faster post-breach recovery.
CFOs should seek policies that deliver tangible value before and after an incident occurs, focusing on preventative measures like vulnerability assessments and employee training.
"Insurers that collaborate closely with governments and cybersecurity specialists, while strengthening preventative measures such as vulnerability assessments and employee training will be best placed to retain and grow cyber customers," concludes Hutcherson.
By embracing a holistic approach to cyber risk management, CFOs can safeguard their organisations from the full scale of emerging threats in an increasingly volatile world.
