Singapore, 25 June 2026: Manufacturers across Asia-Pacific face potential uninsured losses as cyber-attacks increasingly target industrial systems, exposing a mismatch between where global manufacturing risk is concentrated and where insurance protection is most developed, according to leading specialist insurer, Tokio Marine Kiln (TMK).

Asia-Pacific accounts for more than half of global manufacturing output[i] and in 2024 was responsible for around a third of global cyber incidents, more than any other region and up 13 per cent year-on-year - with manufacturing the most targeted industry[ii]. System intrusion attacks, have risen sharply, increasing from 38 percent to around 80 per cent of breaches in the region[iii]

Where cyber events affect physical operations, traditional insurance structures may not respond as businesses expect. Cyber policies typically exclude physical damage, while property policies exclude cyber-related perils; creating a potential coverage gap for cyber physical damage events and ensuing business interruption.  

TMK’s underwriting data also shows a disconnect between insurance purchasing trends and underlying exposure. Large corporates in the region are often purchasing multi-million-dollar property programmes to protect their multi-billion-dollar industrial assets, but they are leaving these assets uninsured for losses arising from a cyber-attack.

Manufacturing, logistics, healthcare, utilities and power generation businesses are among the sectors most exposed due to their reliance on interconnected systems and operational technology. Highly integrated production networks mean disruption in one location can have wider regional and global consequences.

Georgie Furness‑Smith, Cyber Underwriter at TMK Asia, said:

“As operational technology becomes more integrated with IT systems, cyber-attacks are increasingly targeting systems that control industrial activity, raising the potential for disruption to physical operations impacting machinery, facilities and production processes. 

“One of the reasons this risk remains underinsured is that it has not yet translated into a large number of visible losses, so it is not always prioritised by buyers.

“However, the underlying risk is building. We are seeing more attacks targeting the systems that control industrial operations, while the way these risks are assessed and insured is still largely based on traditional IT exposures.

“Insuring cyber physical damage risk requires a different level of understanding - not just of cyber security, but how industrial systems behave under stress. That is where the gap between exposure and protection becomes most pronounced.”

TMK predicts the issue could become more significant as automation, industrial connectivity and AI-driven systems increase the likelihood of cyber incidents affecting physical processes.

Specialist solutions are beginning to emerge, with a limited number of insurers, including TMK, providing affirmative cover designed to address cyber-triggered physical damage and resulting businesses interruption. TMK has been providing insurance for these types of losses for over 10 years.

The findings form part of TMK’s forthcoming white paper on risk and protection gaps in Asia-Pacific, due to be published later this year.

ENDS

Notes to Editors

Media Contact

Brian.norris@cognitomedia.com

Cognito – TMK@cognitomedia.com

Laura.Guerin@tmkiln.com

TMK – Communications@tmkiln.com

About Tokio Marine Kiln

Tokio Marine Kiln is a leading specialist insurance underwriting business operating in the Lloyd’s insurance market. Through our operations in the UK, US (Tokio Marine Highland) and Asia Pacific, and as part of one of the world’s largest insurance groups, Tokio Marine, we protect customers around the world against complex and ever-changing risks. We have eight underwriting teams focused on Property & Motor; Liability; Aviation; Cyber & Enterprise Risk; Marine & Energy; Special Risks; Portfolio Solutions and Specialty Reinsurance, which are complemented by our “outstanding” Claims service. Together we enable our clients to fulfil their ambitions for a better tomorrow. Tokio Marine Kiln benefits from a Standard & Poor’s rating of A+ for its Lloyd’s syndicates. For more information, visit www.tmkiln.com.

Tokio Marine Kiln Syndicates Limited (incorporated and registered in England and Wales with registration number 00729671 and whose registered office is at 20 Fenchurch Street, London EC3M 3BY) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (with FCA register reference number 204909).

[i] International Yearbook of Industrial Statistics

[ii] IBM (2025). X-Force Threat Intelligence Index 2025. https://www.ibm.com/reports/threat-intelligence

[iii] Verizon Business (2025). 2025 Data Breach Investigations Report. https://www.verizon.com/business/resources/reports/dbir/