India’s AI Boom Sparks Cybercrime Wave
Rising Cyber Threats Challenge Insurers in Asia-Pacific
Aon’s 2025 Cyber Risk Report highlights a sharp rise in cyber incidents across the Asia-Pacific region, driven in large part by advances in artificial intelligence (AI) technology and geopolitical tensions. The data, gathered from over 3,000 clients worldwide using the Cyber Quotient Evaluation (CyQu) system, reveals a 30% increase in cyber incident frequency in 2024 alone, with a 134% rise since 2020.
Insurance claims tied to cyber events in Asia-Pacific have also climbed 22%, reflecting the growing impact on businesses. A significant driver is the use of AI-powered tools such as deepfakes, which have fueled a 233% surge in social engineering claims. These incidents often carry severe reputational damage, with affected companies facing average shareholder value losses of 27%.
India’s Growing AI Adoption Brings New Security Concerns
India is experiencing rapid AI adoption within enterprises, which has led to a shift in the cyber threat landscape. Attackers are exploiting this trend by injecting malicious code, hijacking credentials stored on company devices, and targeting cloud-based virtual infrastructure. Once inside, they move laterally through networks, widening the breach’s impact.
Ransomware attacks remain a major threat. Cybercriminals use stolen data to demand payments, threatening to release sensitive information if their demands are unmet. In response, insurers in India are evolving their underwriting strategies to emphasize cybersecurity maturity. While full compliance with controls is no longer always mandatory upfront, clients must demonstrate a clear roadmap toward implementing security measures.
Cyber Insurance Underwriting Adapts to Growing Threat Complexity
Insurers are shifting from static checklists to more dynamic evaluations of security architecture. Some are willing to insure businesses still developing their controls, provided there is evidence of ongoing progress. This reflects a practical approach to risk management amid fast-changing threats.
Prasanna Kumar, head of cyber solutions in India for Aon, noted that rapid AI adoption brings both opportunities and risks. “Data poisoning attacks can undermine critical AI systems, while deepfake technology enables more sophisticated social engineering,” he said. Kumar emphasized the need for organizations to strengthen their defenses with regular audits, comprehensive employee training, and enhanced threat monitoring.
- Regular security audits to identify vulnerabilities
- Employee training programs focused on cyber awareness
- Advanced monitoring systems for early threat detection
For insurance professionals, these shifts mean underwriting decisions increasingly depend on continuous improvement and proactive risk mitigation rather than just compliance checkboxes.
Key Takeaways for Insurance Professionals
- AI-driven cyber threats are increasing in sophistication and frequency, especially in India.
- Social engineering attacks, fueled by tools like deepfakes, are causing a surge in claims.
- Underwriting now values ongoing cybersecurity progress, not just existing controls.
- Organizations must invest in audits, training, and monitoring to build resilience.
- Insurers should adjust risk models to account for AI-related vulnerabilities and evolving threat tactics.
Given these trends, insurance providers and brokers should prioritize understanding AI-related cyber risks and encourage clients to adopt proactive security measures. This approach will help manage exposures effectively while supporting clients’ digital growth.
For those interested in deepening their knowledge of AI and cybersecurity, Complete AI Training offers relevant courses that cover AI’s impact on security and risk management.
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