Kathmandu. Manufacturers in the Asia-Pacific region are increasingly vulnerable to cyberattacks. Which can damage factories and disrupt production. However, many may not have insurance for the physical damage they cause.
Georgia Furness-Smith, cyber underwriter for Tokyo Marine Killen Group (TMK) Asia, said in a statement in June that “as operational technology becomes more integrated with IT (information technology) systems, cyberattacks are increasingly targeting systems that control industrial activity.” This increases the risk of disruptions in physical operations and affects machinery, facilities, and production processes. ’
According to Smith, insurance coverage for cyber risks is lower in part. “That’s because major industrial losses have dropped significantly,” she said, “although attacks on operational technology are increasing.” ’
According to TMK’s report, the Asia Pacific region accounts for more than half of global manufacturing output and accounted for nearly a third of all cyber incidents globally in 2024. That’s the highest part of any field.
The manufacturing industry was the most targeted. System intrusion attacks accounted for about 80 percent of breaches. This was up from 38 percent a year ago.
TMK has said that many standard cyber insurance policies do not cover physical damage. “While property insurance may not cover losses from cyber incidents,” TMK said, “as a result, companies may face uninsured maintenance costs and business disruption following an attack.” ’
Manufacturers, logistics operators, healthcare providers, utilities, and power generators face increasing risks as they adopt more connected devices, automation, and artificial intelligence (AI), TMK’s report said. –Agency
