Korean Cyber Insurance Market at 14% of Japan's... Insurance and Security Sectors Seek Revitalization

Korea Fire Insurance Association Holds Cyber Risk Management Meeting for Insurance Industry Practitioners

The Korea Fire Insurance Association announced on the 24th that it held the "Cyber Risk Management Insurance Industry Practitioners Meeting" at its headquarters in Yeouido, Seoul, on the 23rd.

This meeting was organized to strengthen the insurance industry's cyber risk response capabilities in light of the rapid increase in cyber incidents, such as the SK Telecom USIM information leak, the YES service disruption caused by ransomware, and the Lotte Card data breach. The event was attended by major non-life insurance companies including Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, DB Insurance, Hanwha General Insurance, as well as reinsurers such as Korean Re, global brokers like Marsh and AON, and security experts. They discussed cyber insurance and risk management strategies.

The Korea Fire Insurance Association held the "Cyber Risk Management Insurance Industry Practitioners Meeting" on the 23rd at its headquarters in Yeouido, Seoul. Korea Fire Insurance Association

During the meeting, Hee-Seok Han, Chief Information Security Officer (CISO) of Inven, presented on "Artificial Intelligence (AI) and New Security Attack Cases." Bong-Seok Yoo, CEO of Urak, discussed "Digital Forensics and Information Leakage Security Assessment." Hoon Kwak, Team Leader at the Korea Fire Insurance Association, shared the "Results of the Cyber Insurance Awareness Survey and Directions for Standardizing Cyber Risk Management Systems."

The association visited the Japan branch of Munich Re on the 16th to discuss the global cyber insurance market and cyber insurance risk management techniques. They are considering benchmarking the Japanese example to promote the standardization of domestic cyber insurance risk management.

As of 2024, the size of the domestic cyber insurance market is approximately 65.8 billion won, which is only about 14% of Japan's 470 billion won. This is a low level compared to the insurance penetration rate of the domestic economy and the non-life insurance industry. It also falls short of the Asia-Pacific regional average.

An association representative stated, "Cyber incidents are a critical risk factor directly linked to corporate survival," adding, "We plan to actively support the revitalization of the domestic cyber insurance market by resolving information asymmetry and improving risk assessment accuracy through cooperation among the insurance industry, security sector, and risk management experts."

Based on the results discussed at this meeting, the association plans to advance the cyber risk response system in partnership with the insurance industry by conducting research on standard questionnaires for cyber insurance enrollment and holding regular seminars.