Local expertise key to Swiss Re’s cyber expansion as rates soften

Swiss Re is hoping that its focus on regional expertise will help it grow its APAC cyber book, despite intensifying competition.

Cyber rates have fallen considerably over the past few years, as more underwriters have pushed into Asia. According to data from Marsh, rates in the region decreased by 5% in the third quarter of 2025, marking their seventh consecutive quarter of rate declines. Softer market conditions carry the risk of looser underwriting discipline as firms compete for market share.

Adding value

Giv Kahrom, Swiss Re’s Head of Cyber for APAC, says that succeeding in this environment means looking at where value can be added, rather than just focusing on rate reductions.

“We are a leading reinsurer and we have a lot to offer the market, far more than just capacity,” says Kahrom. “We want to engage with the client. Client enablement, tailored to local markets, is very important for us and is where we can differentiate ourselves.”

Swiss Re this month appointed a new senior underwriter for the region, Cheryl Tang, who will help support the reinsurer’s cyber expansion.

“Players active in the region want to grow the size of this pie, but for this to happen we need good product design, accurate pricing and the right distribution models. All of this needs to be tailored to the region.”

Giv Kahrom

APAC Head of Cyber at Swiss Re

“Local underwriting needs can only be fully met by those that properly understand regional nuances,” says Kahrom.

There is huge growth potential for APAC cyber insurance. Swiss Re data suggests that the size of the global cyber insurance market is around US$15.6bn, with APAC accounting for just under 10% of that. If one strips out Australia and New Zealand, the region accounts for US$1bn.

“APAC markets have very different levels of maturity. There is Australia, which is comparably very mature, and then there is Southeast Asia, which still has a long way to grow,” says Kahrom.

“Players active in the region want to grow the size of this pie, but for this to happen we need good product design, accurate pricing and the right distribution models. All of this needs to be tailored to the region.”

SME opportunities

There remains vast and untapped potential in APAC’s SME and mid-market segments. However, growing in this space is often challenging, with businesses reluctant to pay for protection against a risk they don’t think will materialise.

“All of the players – the reinsurers, the brokers, the primary insurers – have a role to play in making SMEs more resilient in every country,” says Kahrom.

Far from weakening underwriting discipline, Kahrom thinks that the growing interest in APAC cyber could be a net positive, by helping to grow the overall size of the market.

“More players and more capacity coming to the cyber market obviously puts pressure on insurers. This is something we are seeing globally,” says Kahrom. “However, APAC markets are also likely to benefit from new knowledge coming to the region. More players contributing to the market – insurers, (re)insurers, tech players – will increase understanding and awareness of cyber risk.”

(Re)insurers are starting to bring new products to the APAC markets, too. This includes combining cyber cover with other insurance cover (such as professional indemnity) and performing complementary assessments before businesses take out new policies.

Such pre-binding vulnerability scans allow both insurers and insureds to better understand insurance needs before a policy is written. They also help insurance companies to better tailor products to individual customers.

“These things have been around for some time in more mature markets, but have been less common in Asia,” says Kahrom. “Now that there is more of a focus on writing cyber in the region, more and more players build up these services locally.”

This will help expand the market in APAC, countering the potentially negative impact of falling rates, says Kahrom.

“Insurers need to find new ways of tapping into businesses that haven’t yet bought policies because, if they go for the same companies all the time, then at some point there won’t be any more business to get,” says Kahrom. “Finding strategies to tap into new business will ultimately lead to positive and prudent growth. This will be to the benefit of everyone.”