HDI Global Japan eyes growth in cyber-insurance

Many Japanese firms remain underinsured despite rising exposure to cyber-incidents.

HDI Global SE’s Japan unit plans to expand its cyber-insurance capabilities whilst tightening underwriting discipline as companies face rising digital threats and insurers seek to protect profitability, its country head said.

Managing Director Hiro Yamasaki said cyber-risk is becoming one of the most rapidly evolving threats for businesses as attacks grow more frequent and sophisticated, increasing the risk of operational disruption.

“Cyber-risk is definitely one of the fastest-evolving risks for businesses today,” he told Insurance Asia. “The frequency and sophistication of attacks continue to increase and the potential business interruption impact can be severe.”

Yamasaki said Japan’s cyber-insurance market still has room to expand as many companies remain underinsured despite rising exposure to cyber-incidents.

A study by Aon Plc found that more than a quarter of organisations in Japan reported cyber-related losses, underscoring the scale of the risk.

However, far fewer companies have formal business continuity plans, pointing to gaps in preparedness that could affect insurance coverage and claim outcomes.

“Cyber-risk must be approached holistically, not only through insurance capacity but through continuous risk management as well,” Yamasaki said via Zoom.

Yamasaki, who took the helm of the Japanese unit of the Germany-based insurer earlier this year, said the company would continue focusing on its core commercial insurance portfolio whilst gradually strengthening cyber-offerings for corporate clients.

The insurer primarily serves large commercial and industrial companies in Japan, particularly in sectors such as manufacturing and multinational operations where property and liability insurance play a key role in managing operational risks.

Property and liability lines remain the backbone of the group’s business globally.

These segments account for the majority of gross written premiums, with fire and other property damage forming a significant share and general liability another major component, according to the company’s financial disclosures.

Japan’s property and casualty insurance market is also expanding as businesses seek broader protection against operational and financial risks.

Industry forecasts point to steady growth over the coming years as corporate risk management becomes more complex.

Within this environment, HDI Global aims to stand out through technical underwriting expertise and disciplined risk selection, Yamasaki said.

The insurer is also looking to deepen partnerships with brokers and agents. More structured strategy discussions and clearer communication are intended to strengthen collaboration and improve the development of insurance solutions for clients.

HDI Global’s international network is another advantage for Japanese companies operating overseas. The insurer operates across more than 170 countries, enabling multinational clients to arrange coordinated coverage across multiple territories.

Technology is expected to play a bigger role in underwriting and risk assessment. HDI Global is investing in data analytics and artificial intelligence tools to support faster and more consistent decision-making whilst keeping specialist expertise central to the process.

“Balanced growth and sustainable profitability come from technical excellence, disciplined underwriting, and strong partnerships,” Yamasaki said.