HDInsights February 2026 Ed.18 HDI Asia Pacific and Middle East Newsletter
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December 2025 | Edition 18 4 7 9 13 15 20 Foreword - Stefan Feldmann From 10 Days to 3 Minutes: How AI is Accelerating Risk Assessment Setting sights on Southeast Asia Stefan Feldmann on expansion, discipline and staying relevant in industrial insurance When Cyber and Political Risk Meet D&O Finding Momentum in the Middle East’s Transformation Contents
Our commitment to developing talent and strengthening the future of the insurance industry continues. HDI is proud to be the Program Sponsor of the inaugural UAC Leadership Academy – Class of ’26, developed by the Underwriting Agencies Council in partnership with ANZIIF. This landmark initiative supports mid-career professionals in underwriting agencies who are ready to step into leadership with purpose, confidence, and impact. As a long-standing partner to underwriting agencies, we are passionate about empowering people – because great leadership builds stronger businesses, stronger communities, and a stronger insurance sector. As we look back briefly to the close of 2025, there were many moments worth celebrating. HDI was proud to champion Sydney’s Premier European Networking Event – the Cruise with the Europeans, bringing together professionals from across 17 European Chambers for an unforgettable evening of connection, collaboration and Sydney Harbour magic. More than a cruise, this long-standing tradition strengthens European-Australian business relations and fosters meaningful relationships across industries and cultures. A Strong Start, New Partnerships, and Momentum for 2026 Welcome to our first edition of 2026. The year has begun at full steam, and it is already shaping up to be one defined by momentum, connection, and purposeful growth. A significant milestone at the very start of the year was the opening of our new office in Seoul. This expansion forms part of HDI’s strategic approach to profitable growth and deepens our presence in one of Asia’s most important P&C insurance markets. With a total market size of around AUD 140 billion, Korea offers substantial opportunity, and our local presence enables more focused segment targeting in areas where HDI holds strong competitive advantages – including ESG liability, renewable energy, and infrastructure. Korean market participants will now benefit from HDI’s broad product portfolio and specialist expertise, with selected specialty solutions being introduced progressively. These include event-cancellation cover for large K-pop events and surety solutions for Korean contractors operating overseas – practical examples of how our global capabilities can be applied to local and regional needs. We are also delighted to begin the year with a new partnership with Steadfast and warmly welcome a community of new readers to our newsletter. Building strong, trusted partnerships remains central to everything we do, and we look forward to growing together. Stefan Feldmann, Head of HDI Global Asia-Pacific Managing Director HDI Global SE, Australia Managing Director HDI Global Specialty SE, Australia and New Zealand Foreword HDInsights Edition 18 | page 4
Alex Tarantino Managing Director HDI Global Singapore HDInsights Edition 18 | page 5 We continue to invest and explore how AI can enhance our operational excellence whilst at the same support our clients with loss prevention in the renewable energy sector, from wind technology to BESS systems. Looking forward, we have gained tremendous momentum over the past 12 months, and we are ready and excited for what 2026 will bring. On behalf of our Singapore team, thank you for your continued trust and partnership.” Foreword We also shared a memorable evening of partnership and connection at our HDI Global SIRC Celebration in Singapore. Following an inspiring week at SIRC, it was a pleasure to bring together partners and colleagues for a relaxed evening of reflection, networking, and open conversation about how we can collaborate even more effectively. Events like these deepen trust, spark new perspectives, and strengthen relationships beyond formal sessions. In this edition of our newsletter, you’ll find: From 10 Days to 3 Minutes: How AI is Accelerating Risk Assessment Setting sights on Southeast Asia Stefan Feldmann on expansion, discipline and staying relevant in industrial insurance When Cyber and Political Risk Meet D&O Finding Momentum in the Middle East’s Transformation “As we look ahead to 2026, our Singapore team has much to anticipate and celebrate. Q4 proved to be one of our busiest periods, capping off an already dynamic and demanding year where the pace intensified and the collective effort of our team truly shone through. We continued to welcome new colleagues into the HDI family, with two key additions strengthening our underwriting leadership: Peter Schraa, who joins us as Lead Underwriter for Marine, and Jeremy Wang, who steps in as our new Lead Underwriter for Financial Lines. Their experience and enthusiasm enhance our capabilities and position us well for the opportunities ahead. “This year also marks significant milestones. Our Singapore branch has plans underway for a new office opening in Q4 2026 and our Malaysia branch celebrates its 10-year anniversary. This expansion, alongside our Asia partnership with PARIMA, reinforces our commitment to elevating our brand visibility and strengthening our market position across Southeast Asia. We have now bolstered our Singapore Energy Hub with Upstream Energy underwriting and as one of the leading Energy markets in the region we continue to be the Partner in Transformation for our clients and brokers. “As we look ahead to 2026, our Hong Kong team has much to anticipate and celebrate. This November marks a significant milestone as our Hong Kong office celebrates its 30-year anniversary – three decades of serving clients across the region with expertise and commitment. We began the year by expanding our AsiaPacific presence with the opening of a representative office in Seoul, Republic of Korea on January 1st. Led by Mr Ki Hyung Jo, a seasoned insurance expert with 25 years of local market experience. This agile set-up allows us to deepen relationships with brokers, cedents, and clients directly in one of Asia's largest insurance markets, while maintaining our core underwriting and claims processes in Hong Kong.
Michael Ahn Chief Executive HDI Global Hong Kong Willem van Wyk Senior Executive Officer HDI Global Dubai Throughout this journey, we've benefited from tremendous support from our Singapore, Australia, and head office teams. Looking to 2026, our expanding team positions us well to promote HDI more actively throughout the region. While the market is transforming rapidly with new capacity and competitive pressure on rates, we're confident in navigating these dynamics with the talent in the business and strong support from HDI Hannover and beyond, maintaining our commitment to quality underwriting and client service.” This milestone strengthens our regional capabilities and demonstrates our ongoing commitment to growth across Asia-Pacific. Looking forward, we are thrilled for the opportunities and challenges that 2026 will bring. On behalf of our Hong Kong team, thank you for your continued trust and partnership.” Foreword HDInsights Edition 18 | page 6 “Reflecting on 2025 and looking ahead to 2026, our Dubai team has much to celebrate in what has been a landmark year. Having completed our first full year of operation, we achieved our gross written premium target through a strong fourth quarter – a testament to the market's confidence in HDI and our team's dedication. We've significantly strengthened our capabilities and leadership. We expanded into the power line of business with Shumaila Shukeel joining our team, and promoted John Morrell to Head of Energy and Engineering for the region. We've also grown beyond single-trader operations in both Property and Engineering, welcoming experienced underwriters who bring valuable market knowledge. In December, our first broker function since launch was very well attended, reinforcing the strong reputation our team has already established. Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director, HDI Global SE, Australia Managing Director HDI Global Specialty SE - Australia & New Zealand On a personal note, I was deeply humbled to be recognised as Executive of the Year 2025 in Banking, Financial Services & Insurance by The CEO Magazine – ANZ in Melbourne. This recognition belongs to our entire team. Every success we achieve is built on collaboration, trust, and care – the spirit that truly defines who we are at HDI. Thank you to the HDI team for your energy, dedication, and commitment. I look forward to an exciting and productive 2026 as we continue to be our clients’ Partner in Transformation. Warm regards,
Manual data cleansing is a relic of the past. Discover how HDI ARGOS 4.0 uses AI to process 33,000 locations in minutes, allowing underwriters and brokers to stop “ticking boxes” and start solving risks. ARGOS 4.0 represents a fundamental shift from reactive risk analysis to proactive resilience. The transformation begins the moment a client uploads their asset schedule. Where traditional processes took days of manual data cleansing, ARGOS 4.0’s AI-powered upload tool processes tens of thousands of locations in minutes. Lars Regner, Head of Resilience Services at HDI Risk Consulting, highlights the sheer scale of this efficiency: “A German retailer with 33,000 locations currently needs 10 working days to prepare locations and correct errors in Excel. With HDI ARGOS 4.0, this is done in three minutes.” The system automatically standardises address formats, assigns proper geocoding, and allocates sums insured to the correct line of business – whether building value, content value, or stock value. From 10 Days to 3 Minutes: How AI is Accelerating Risk Assessment From 10 Days to 3 Minutes: How AI is Accelerating Risk Assessment third of our book.” HDInsights Edition 18 | page 7 They can also draw profiles across a site, and even trace between objects in 3D to understand entrances, rooflines, and micro-paths for water flow. As Höring emphasises: “Topography is explicit rather than inferred, so you can now take action where needed before your risk becomes a loss.” This precision extends across multiple hazards. ARGOS 4.0 provides detailed assessments for floods with specific water heights, earthquakes, storms, wildfires, volcanic activity, hail, lightning, and tsunami risk – each with return periods from 10 to 500 years. The platform sources the most granular and regularly updated hazard maps available, ensuring site-specific rather than area-based exposure assessments. Changing the Conversation The precision of ARGOS 4.0 has fundamentally altered discussions between consultants, clients, and brokers. Glanz notes that once a client sees their flood exposure properly visualised, they become much more proactive. This precision often works in the client's favour. In one case, a proposed site in New Zealand was identified as a high flood risk via ARGOS 4.0, leading the client to reconsider the site selection and relocate to a non-flood exposed nearby site. Seeing Risk in Three Dimensions The Elevation Tool is perhaps the most transformative innovation. “Floods and flow dynamics follow the terrain,” notes Dr. Dirk Höring, HDI Global Board member. “The Elevation Tool allows you to interactively inspect elevation profiles in both 2D ground and 3D surface modes.” Previously, risk managers might treat a large site as uniformly exposed. Now, they can zoom to meter-level detail to identify assets on critical gradients and determine where mitigation measures – like berms or barriers – will be most effective. It’s so much faster to clean the data and focus on what really matters: understanding exposures and how to mitigate them.” Philipp Glanz Managing Director of HDI Risk Consulting
Contact - HDI Conversely, the tool can provide relief when local council maps overstate a risk that topography analysis proves is non-existent. Climate Risk and Future Scenarios Whereas traditional natural catastrophe tools rely on historical patterns, HDI is already looking into the future. HDI’s climate risk modelling assesses how exposures may evolve under different climate change scenarios – such as 2°C, 3°C, and 4°C temperature increases – over 25‑, 50‑, and 100‑year time horizons. These insights will be integrated into ARGOS 4.0, providing clients with direct access to forward‑looking climate analytics. This capability enables companies to evaluate how their natural catastrophe risk profile may shift over time and to plan appropriate mitigation measures. “Climate risk affects the vast majority of our clients,” Glanz notes. “Our objective is to support them in understanding these impacts and in identifying suitable measures to mitigate their exposures.” Since the October rollout of ARGOS 4.0, feedback has been overwhelmingly positive. Clients and underwriters praise the modern interface, ease of use, and comprehensive output. The platform offers fully customisable interactive reporting and dashboards, enabling risk professionals to generate the specific views they need. “HDI ARGOS 4.0 is not just another NatCat tool – it offers real value as the starting point for building true resilience,” emphasises Höring. Lars Regner, Head of Resilience Services at HDI Risk Consulting, adds: “We're not just offering a tool – we're enabling our clients to transform risk into strategic foresight.” From 10 Days to 3 Minutes: How AI is Accelerating Risk Assessment HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 8 iii Underwriter’s Perspective: A Conversation with HDI’s Edwina Reid Edwina Reid, Energy & Property Underwriting Manager (Australia & NZ), discusses how ARGOS 4.0 is changing the “day-to-day.” On Workflow Efficiency: “The flexible data recognition algorithm is a game changer. It accepts non-standardised asset schedules, which used to be a massive time drain for large multinational policies with various languages and address conventions.” On “Secondary Perils” and Climate Change: “Traditional models rely on historical data, which is less reliable for secondary perils. 4.0 allows us to have more informed discussions about shifts in weather patterns. We can accurately weigh the risks of a property based on its specific location, helping us maintain longterm financial stability for our clients.” On Moving Beyond the “Tick-Box”: “In the past, CAT modelling had become a tickbox exercise due to data limitations. The new interface allows us to be more curious – to drill right down into a portfolio or an individual property globally. It gives us a much clearer view of overseas assets and supplier exposures, assisting greatly with policy structuring and pricing.” Philipp Glanz Managing Director HDI Risk Consulting (HRC) P: +61 498 016 552 Philipp.Glanz@hdi.global Edwina Reid Energy & Property Underwriting Manager, Australia and New Zealand +61 409 706 506 Edwina.Reid@hdi.global Click here to learn more about ARGOS 4.0
HDI Global’s global network of experts allows Southeast Asian entities with multinational operations to deal with local teams for worldwide claims management, creating effective collaboration across the organisation. Continued product diversification for clients As part of its efforts in market expansion, the insurer launched three new product lines in Singapore recently: A&H, financial lines, and cyber insurance. This rapid diversification reflects HDI Global’s responsiveness to evolving client needs in the region. The Energy Hub launched at the end of 2024, has already generated significant traction. The company plans to complement this offering by launching upstream energy products in 2026, further supporting existing clients’ business portfolios. Marine insurance represents another area of growing strategic focus. HDI Global recently appointed Peter Schraa as Head of Marine to expand the company’s capabilities in the Singapore market. “We want to leverage our position as a leading marine player in Europe and build a comparable presence in Asia,” he said. Setting sights on Southeast Asia German insurer HDI Global is expanding product lines and capabilities as it pursues regional leadership in Southeast Asia, said HDI Global Singapore’s Mr Alex Tarantino. First published in Asia Insurance Review, January 2026 By Ahmad Zaki After 13 years in the Asia-Pacific region, HDI Global is accelerating its goal of becoming a leading corporate and specialty insurer in Southeast Asia, with a clear strategy centred on core markets and an expanding portfolio of specialised products. HDI Global Singapore’s Principal Officer and Chief Executive Alex Tarantino outlined the company’s vision, emphasising a focused approach on Malaysia, Thailand, and Indonesia with Singapore as the hub for regional growth. “To me, success means cementing our presence and bringing our global capabilities into these markets,” Mr Tarantino said, explaining that HDI Global aims to establish itself as a top-three player in its chosen segments, particularly in large industrial complex risks and international programmes. Increased regional presence HDI Global’s strategy combines organic growth with potential acquisitions. In Malaysia, where the company has held a license for ten years, the insurer is exploring opportunities to expand underwriting activities on the ground while also evaluating M&A possibilities. Similar approaches are being considered for Thailand and Indonesia. The company’s competitive advantage in international programmes goes beyond initial execution and implementation. Mr Tarantino said, “The real proof of our successful international programmes is our authority on claims handling and claims management.” Setting sights on Southeast Asia HDInsights Edition 18 | page 9 “We have seen considerable success for renewable energy, particularly on solar and wind farms where we have picked up a number of significant accounts as lead market.” Alex Tarantino Principal Officer and Chief Executive
For HDI Global, cyber represents one of the fastestgrowing product areas in Southeast Asia, and the company is actively building its capabilities through new hires and education initiatives. He sees significant opportunity to partner with brokers to explain why businesses need cyber coverage and to educate them on business interruption risks. The market is maturing positively. “It’s encouraging to see that companies are now investing considerably to improve their own risk quality, which means obtaining insurance is becoming much easier,” he said. HDI Global is developing tools to help clients improve their information security resilience. When businesses are validated through such processes, the company can turn around underwriting decisions extremely quickly; addressing a historical challenge where dedicated cyber risk engineers were required for adequate assessments. Navigating emerging risks Looking ahead, Mr Tarantino identified several vital risk areas requiring ongoing monitoring. NatCAT risks remain a recurring concern given the region’s geographic exposure, with continued debate around increasing frequency and severity. Geopolitical volatility also features in risk discussions, though he expressed confidence in HDI Global’s ability to navigate uncertainty. HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 10 Technology-driven risk management Central to HDI Global’s positioning as a “Partner in Transformation” is its use of advanced technology to support clients’ energy transition needs. This is particularly relevant in Southeast Asia, where substantial investment is flowing into renewable energy projects. “We recognise the regional challenges, whether it’s geography or the lifespan of technology,” he said. “By leveraging AI, we can support our clients and brokers with systems that anticipate issues and strengthen risk management.” The company employs AI-powered monitoring systems to manage emerging risks in renewable energy. Its ‘WIND POWER Plus’ product monitors wind turbine efficiency, detects issues early, and prevents fire losses —a critical capability as the technology matures. Internally, HDI Global views AI as an enhancement tool rather than a replacement for human expertise. “We see AI as an enhancer for not just our people, but also for the client experience,” he said, adding that it also improves operational efficiencies for staff. He added that one of the biggest challenges when it comes to AI is in making sound investments in the early stages. “If the upfront investment isn’t right, correcting that becomes extremely difficult down the line.” Cyber insurance opportunity Alongside the discussion on AI, Mr Tarantino also brought up cyber insurance. “Cyber risk consistently ranks among the top concerns for clients”, he said. “That presents many opportunities for designing innovative solutions that best supports their needs.” Setting sights on Southeast Asia
Setting sights on Southeast Asia Contact - HDI “HDI Global has been transacting since 1903, so we’re used to managing volatile situations,” he said. “We have a good global portfolio mix, allowing us to transact successfully in Asia and maintain profitable results.” Building for growth HDI Global’s expansion ambitions are reflected in significant headcount growth. The company added over 20 new staff members in 2025, bringing the total close to 60 employees in Singapore. “As a company and a culture, we’re driving an entrepreneurial spirit and growth mentality,” Mr Tarantino said, expressing enthusiasm about the calibre of new talent joining the organisation. HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 11 Alex Tarantino Principal Officer and Chief Executive HDI Global SE, Singapore P: +65 9873 8399 Alex.Tarantino@hdi.global From a regulatory standpoint, he noted that the company has not encountered material challenges from the diverse regulatory landscape across Southeast Asian markets, allowing it to focus on business development and client service. As HDI Global positions itself for 2026 and beyond, the combination of strategic market focus, product diversification, technological capabilities, and growing local presence suggests an insurer serious about achieving its top-three ambitions in one of the world’s most dynamic insurance markets.
We are visionaries. HDI Global SE, Australia ⟶ Engineering Our insurance solutions protect your project from planning to completion. #WeareHDI #EnablingPartner HDInsights Edition 18 | page 12 www.hdi.global/en-au/
Stefan Feldmann on expansion, discipline and staying relevant in industrial insurance Building for the Long Run: HDI's AsiaPacific Growth Story Soft insurance markets don't typically reward ambition. Yet Stefan Feldmann, Head of HDI Global Asia-Pacific, has overseen growth across the region over the past year – from Australia and New Zealand to fast-growing hubs in Singapore and Hong Kong, a newly opened office in Dubai, and a launch in South Korea. From expanding international programmes out of Australia to building casualty capabilities in the Middle East, growth has come alongside complexity: onboarding new teams at speed, maintaining underwriting discipline, and responding to a risk landscape increasingly shaped by climate extremes and technological disruption. In this interview, Stefan Feldmann looks back on a year of contrasts – and ahead to what leadership in industrial insurance will require in the coming years. When you look back on the past year, what stands out most? Stefan Feldmann: What really stands out is that it was the first full year for several of our new leaders – in Singapore, Hong Kong and Dubai. Seeing how quickly these teams established themselves, built profitable portfolios and gained broker trust has been extremely encouraging. Dubai was brand-new for us, and the way the team hit the ground running exceeded expectations. They were warmly received and built strong partnerships very quickly. That tells me a lot about the relevance of our offering and the strength of the HDI brand. You opened all these new offices, including one in Korea in January. How do you maintain culture while scaling so quickly? Stefan Feldmann: Alignment is critical. Everyone needs to understand what HDI stands for, how we engage with the market and what kind of partner we want to be. Stefan Feldmann on expansion, discipline and staying relevant in industrial insurance HDInsights Edition 18 | page 13 That's why we place strong emphasis on onboarding, communication and learning and development. We invest heavily in making sure new colleagues understand our culture, our purpose and our expectations. Growth only works if people are aligned behind a shared strategy and mindset. How would you describe performance across the region? Stefan Feldmann: We grew in line with – and in some areas ahead of – our expectations, and we did so profitably. That's especially meaningful given how challenging market conditions have been. In Australia, we continued to grow very profitably despite an increasingly competitive and softening market. The pace of market shifts has been greater than many expected, but our performance shows that disciplined underwriting and strong relationships still matter. What has enabled HDI to grow despite these conditions? “ It comes down to relationships and reliability. Brokers and clients value working with us because we're consistent and longterm in our approach. In a volatile market – with frequent changes, new entrants and shifting strategies – we've demonstrated that we're a stable, dependable partner. We're not a “hot and cold” market. We're here for the long run, and people and businesses can rely on that. As an industrial mutual, our focus is clear: serving clients and partners sustainably. That stability matters not only for our clients, but also for our people.” Stefan Feldmann Head of HDI Global Asia-Pacific Managing Director, HDI Global SE, Australia, Managing Director HDI Global Specialty SE - Australia & New Zealand
In which areas have you seen particular momentum? Stefan Feldmann: International programmes continue to be a strong growth engine. We're winning more multinational relationships and expanding our capabilities – from captive solutions to alternative risk transfer. We also remain a very strong partner for renewable energy. We're among the market leaders for construction and operational risks in renewable projects, and we actively support companies transitioning towards cleaner energy models. Supporting that transformation is core to who we are. Singapore has become increasingly important. How do you see its role? Stefan Feldmann: Singapore is clearly the pre-eminent insurance and reinsurance hub in Asia-Pacific, and we're well positioned there. Over more than a decade, we've consistently invested in the team and capabilities, and we've now firmly established our global energy centre there. By bringing upstream, downstream, renewable energy and construction expertise together, we offer clients a true one- stop shop for complex energy risks. That integrated approach is resonating strongly. Construction and infrastructure remain major themes. How does that shape HDI's role? Stefan Feldmann: These sectors are particularly important in Asia and the Middle East, where we continue to see significant investment and large-scale projects. Whether it's transport, energy or broader infrastructure, these developments require sophisticated risk management and risk transfer solutions. As a strong industrial insurer with local presence and global expertise, we're well positioned to support these projects through both construction and operational phases. Digital transformation and AI are reshaping the industry. How are you approaching these technologies? Stefan Feldmann: We're working on several digital initiatives that aim to raise efficiency and improve the broker and client experience – from faster, more streamlined processes to more advanced analytics tools. At this stage, AI is primarily an enabling tool. It supports analytics, improves efficiency and helps people work smarter. It doesn't replace expertise, judgment or relationships. The key point is that technology – whether digital platforms or AI – should support our people and relationships, not replace them. It helps streamline processes and allows our teams to focus on what matters most: engaging with clients, brokers and business partners. HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 14 Climate risk remains a defining challenge. How does it shape your conversations? Stefan Feldmann: Climate risk is a reality we cannot ignore – particularly in Australia. While global political momentum may fluctuate, the underlying risks are becoming more visible and more severe. As an insurer, we have deep insight into these developments, and we see it as our responsibility to support clients through risk mitigation, transition and resilience. Economically, the shift towards renewable energy and more sustainable models is already underway, and we want to remain a committed partner in that journey. Looking ahead five years, what would success look like? Stefan Feldmann: Success means being recognised as a leading provider of corporate and industrial insurance solutions in Australia, New Zealand and the wider region – trusted for our expertise, reliability and partnership approach. It's about sustainable leadership, not just size. Finally, what continues to inspire you about working in this region? Stefan Feldmann: What consistently impresses me about Australia – and the region more broadly – is the “can-do” attitude. When people see an opportunity, they act. There's less hesitation, less red tape, and a strong focus on getting things done. That pragmatism, combined with strong expertise and creativity, makes this a very inspiring environment to work in – and one where HDI fits extremely well. Stefan Feldmann on expansion, discipline and staying relevant in industrial insurance
In an increasingly interconnected world, cyber incidents rarely remain isolated IT issues. At HDI Global's recent HDInsights Live webinar, a panel of specialists examined the complex intersection of cyber risk, directors' and officers' liability, and political risk insurance. The discussion revealed how a single cyber event can cascade across multiple coverage areas, exposing businesses to regulatory penalties, credit defaults, and even geopolitical consequences. The 2025 Cyber Landscape: Speed, Sophistication, and AI Natalie Miladinski, Cyber Underwriting Manager for Asia Pacific at HDI Global, painted a sobering picture of today's threat environment. Cyber incidents now consistently rank among the top global business risks, driven by rapid digitalisation, AI-powered attacks, and rising geopolitical tensions. “Resilience isn't a nice-tohave anymore,” Ms Miladinski said. “It's the difference between staying in business and shutting the doors.” Three trends are reshaping the landscape. First, ransomware has evolved into a sophisticated business model. Criminal groups now offer “ransomware as a service,” enabling even low-skilled threat actors to launch devastating attacks. The tactics have escalated beyond simple encryption: double and triple extortion – where attackers encrypt, steal, and threaten to leak data – has become standard practice. Alarmingly, 50% of Australian businesses hit by ransomware have paid the ransom, highlighting widespread unpreparedness. HDInsights Edition 18 | page 15 HDInsights LIVE online seminar When Cyber and Political Risk Meet D&O Cyber attacks are no longer just an IT problem. HDI experts reveal how a single breach can trigger board liability, regulatory action, and even sovereign risk – and why traditional insurance silos need to break down. Real-World Consequences: 2025's Warning Signs The webinar highlighted three significant 2025 incidents across the Asia Pacific region. In April, hackers exploited the absence of multi-factor authentication (MFA) across major Australian superannuation funds including Australian Super and Hostplus, compromising over 20,000 accounts and stealing $500,000 from retirement savings. The incident demonstrated that MFA is no longer optional – regulators are now pushing for mandatory implementation across the sector. In June, Singapore's Singtel suffered an attack on legacy billing systems, exposing millions of customer records including payment details. The breach triggered investigations under Singapore's Personal Data Protection Act (PDPA), underscoring that legacy systems represent ticking time bombs requiring continuous patching and modernisation. Toyota's August incident affecting all of Asia Pacific saw attackers target connected vehicle APIs, compromising telematics and driver data including location history and diagnostics. The attack raised critical questions about connected car security and sparked regulatory discussions while disrupting customer services. “Connected vehicles are incredible innovations,” Ms Miladinski observed, “but they're also massive attack surfaces.”
Second, supply chain attacks are exploding. Hackers increasingly target vendors and partners as the easiest entry point, with a single compromised supplier potentially affecting hundreds of businesses. Tampered software updates, API vulnerabilities, and insider threats allow attackers to bypass traditional security measures entirely. Third, social engineering has been supercharged by artificial intelligence. Attackers now deploy AI-crafted phishing emails, voice impersonation, and deepfake videos to manipulate employees. “Human error is the number one entry point,” Ms Miladinski noted, “and now it's supercharged with AI.” The most exposed industries include healthcare, where high-value patient data and IoT device reliance create prime ransomware targets; manufacturing, where increasingly connected production lines create systemic vulnerabilities that can cripple global supply chains; financial services facing AI-driven phishing and identity compromise; and education and public sector organisations struggling with outdated infrastructure and third-party integrations. From IT Issue to Boardroom Crisis Jamie Ashby, HDI's Head of Management Liability, emphasised that cyber risk has definitively moved from the server room to the boardroom. “Recent data reveals a stark reality: nearly 50% of cyber events are followed by a D&O claim.” Jamie Ashby, HDI's Head of Management Liability HDInsights LIVE: When Cyber and Political Risk Meet D&O In Australia, directors have legal obligations under the Corporations Act to act with due care and diligence, making cyber risk management a nonnegotiable governance responsibility. ASIC reinforces this by treating cyber risk management as a key component of managing overall business risk. Under the Privacy Act, directors may face personal penalties if personal data isn't adequately protected, while APRA standards require directors of financial institutions to ensure robust security mechanisms are in place. Critically, purchasing cyber insurance alone is insufficient. Directors must demonstrate proactive steps to manage cyber risk, with insurance forming just one component of a broader risk management strategy. Shareholders, regulators, customers, and employees can all file claims alleging mismanagement or breach of fiduciary duty linked to cyber incidents. Notably, this exposure extends beyond public companies – private companies with shareholders face similar risks. Mr Ashby pointed to significant US settlements in 2024 where Google, Zoom, and Okta paid up to $350 million in securities class action litigation directly connected to cybersecurity and privacy allegations. “The message is clear,” he said. “Cyber risk isn't just an IT issue, it's a governance issue with real financial consequences.” HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 16 “Human error is the number one entry point and now it's supercharged with AI.” Natalie Miladinski Cyber Underwriting Manager for Asia Pacific “The days when cybersecurity was seen as an IT issue are behind us. Today, it's a boardroom priority, a core part of good governance.” Jamie Ashby Head of Management Liability, Asia Pacific
How could cyber insurance have helped? The policy would have provided incident response and forensics access, including breach coaches, forensic investigators, and legal counsel. The firm's six-day response delay could have been avoided, with expert guidance reducing data exposure and reputational damage. Cyber insurance typically covers regulatory investigations, defence costs, and legally insurable fines, easing financial strain. Business interruption coverage addresses system downtime, with policies often covering data restoration, system recovery, and lost income to maintain business continuity. Crisis communications and PR support would have helped manage reputational fallout, ensuring compliance with breach disclosure laws while preserving customer trust. Third-party liability coverage protects against claims from affected customers, covering settlements and legal defence costs. The Political Risk Connection: When Cyber Triggers Sovereign Events James Guardino, HDI's Underwriting Manager for Political & Credit Risk in Asia Pacific, explained how cyber events can cascade into political risk and credit default scenarios – a connection many organisations overlook. The Three Pillars of Cyber Risk Management Effective cyber risk management requires focus on three essential pillars: prevention, detection, and response. Prevention starts with fundamentals: regularly reviewing IT security processes, conducting data audits to understand what information exists and where, performing penetration testing and stress testing systems, and providing consistent staff training. Detection means investing in infrastructure that identifies threats promptly, with monitoring tools providing real-time updates to spot trouble early. Response centres should be planning for worstcase scenarios. This includes developing comprehensive crisis response plans, ensuring everyone understands their roles during a cyber event, and making critical decisions in advance. “Directors should have made their decision on whether they will pay a ransomware attack well before any cyber event takes place,” Mr Ashby stressed. “Making these decisions on an ad hoc basis can cause significant issues.” Plans must be tested and updated regularly. A Case Study: When Basic Controls Fail Ms Miladinski examined a 2023 ransomware attack on a financial services firm that illustrated the catastrophic consequences of inadequate cybersecurity governance. After an employee downloaded a malicious file, attackers exfiltrated approximately 385 gigabytes of sensitive data, including personal and financial details of thousands of clients. The stolen data appeared on the dark web within weeks. In 2025, regulators initiated federal court proceedings alleging the firm had failed to maintain adequate cybersecurity controls for several years. ASIC's lawsuit claimed the company neglected basic security measures including proper firewall configuration and monitoring, timely software patching, mandatory cybersecurity awareness training, and adequate resource allocation for cyber risk management. Directors now face potential civil penalties and compliance orders for failing to oversee cyber risk, demonstrating that cybersecurity governance is a board-level responsibility, not merely an operational concern. HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 17 “Cyber insurance is not just about paying claims,” Ms Miladinski emphasised. “It's about buying resilience. For this firm, it could have meant faster recovery, reduced litigation risk, and less reputational damage.” Natalie Miladinski Cyber Underwriting Manager for Asia Pacific Political Risk Insurance (PRI) This cover protects corporates, institutional investors, and traditional lenders against losses caused by political events in foreign countries where they operate. Crucially, PRI must be structured cross-border: policyholders can only insure against actions of foreign governments, not their own. HDInsights LIVE: When Cyber and Political Risk Meet D&O
“This can trigger cross-default across the entire debt stack, where lenders can demand immediate payment on all obligations regardless of tenor, potentially leading to insolvency,” he explained. Three pathways connect cyber events to credit events. Business interruption and regulatory response represent the most direct route: operational disruption reduces revenue while expenses and debt obligations remain constant. Foreign governments may intervene, particularly if businesses operate in sensitive or strategic sectors like financial services or critical infrastructure. Governments can arbitrarily impose capital controls in response to cyber events, making it impossible to transfer funds for debt servicing – “creating a political risk event that triggers payment default even when companies have accessible cash,” as Mr Guardino said. Geopolitical and sovereign risk is increasingly relevant given elevated tensions globally. State-sponsored cyber events – whether nation states attacking each other's critical infrastructure or testing capabilities – can escalate into traditional political risk scenarios including expropriation, dividend repatriation blocks, or political violence against foreign-owned assets. Supply chain disruption and counterparty risk complete the picture. “Cyber events don't affect only directly hit companies but ripple through supply chains,” Mr Guardino said. A major supplier hit by ransomware may be unable to deliver critical components, stopping production. A key buyer's downed systems may prevent payment processing, disrupting trade flows and triggering buyer defaults through the chain. HDInsight Edition 10 - page 21 Political risks can be classified into three tiers: firm-specific risks involving corporate governance and regulatory approvals; country-level risks including institutional frameworks recognising foreign ownership and IP rights, plus transfer risks where governments block fund repatriation or currency conversion; global existential risks like terrorism, war, political violence, and increasingly, cyber attacks. Four Perils Covered Under Political Risk Insurance PRI policies cover four main perils. Expropriation (shortened to CEND: confiscation, expropriation, nationalisation, and deprivation) occurs when governments seize or take control of assets without adequate or any compensation. Currency and convertibility non-transfer risk addresses situations where governments impose arbitrary controls preventing businesses from converting local currency into hard currency or restricting fund transfers out of the country, affecting debt servicing and dividend repatriation. Political violence coverage addresses losses from war, civil war, and terrorism, though typically as part of broader debt or equity policies rather than standalone physical asset coverage. Non-honouring of sovereign obligations to pay an arbitral award covers situations where governments or state-owned entities fail to honour guarantees or offtake arrangements. Businesses may pursue arbitration and receive damage awards that ultimately go unpaid. The Cyber-Credit-Political Risk Cascade Mr Guardino outlined how cyber events can trigger serious financial consequences beyond immediate operational impacts. When a company suffers a significant cyber-attack with systems down and operations halted, severe or prolonged business interruption may cause missed debt payments. HDInsights Edition 18 | page 18 “Cyber risk definitely has the potential to trigger political and credit risk events. We can't think about these things in silos anymore. Cyber attacks are becoming more sophisticated, more frequent, and the pathway for a cyber event to become a credit event is becoming shorter and much more direct.” James Guardino Underwriting Manager for Political & Credit Risk in Asia Pacific HDInsights LIVE: When Cyber and Political Risk Meet D&O
Contact - HDI A critical technical point distinguishes cyber risk insurance from credit and political risk coverage. Most standalone cyber policies contain specific exclusions. However, many credit and political risk template wordings provide affirmative cyber coverage through the Lloyd's Market Association LMA 5408 clause, published in early 2020. This clause specifically affirms cyber coverage in comprehensive credit insurance policies. Given that non-payment credit risk insurance covers non-payment for any reason, the clause clarifies that cyber-related non-payment falls within scope. Standard exclusions apply – like NCBR risks (nuclear, chemical, biological, or radiological materials), insured insolvency, material breach of obligations, fraud, and criminal activity – but cyber itself is not excluded. Practical Guidance for Brokers Ms Miladinski offered practical advice for brokers facing client reluctance to purchase cyber insurance. She recommended positioning cyber insurance as business continuity protection – “a seatbelt for digital risk. You hope you never need it, but when you do, it's a lifesaver.” Emphasising coverage beyond IT is crucial. Policies help boardrooms through incident response, cover legal costs, support marketing teams with PR, assist compliance teams with regulatory requirements, and protect against business interruption that could sink operations. All these coverages are included in HDI's cyber policy. The question is not if but when a cyber attack happens. Given the examples across multiple industries, brokers should discuss incident response planning with clients. Speed is essential, yet surveys show 40% of boards have not tested their incident response plans – meaning they don't know if their written plans work or if people understand their roles. “Please encourage your clients not just to write the plan, but then to test it as well,” Ms Miladinski urged. Mr Ashby reinforced the importance of constantly updating prevention, detection, and response strategies. “Cyber risks are changing all the time,” he noted. “A plan from 12 months ago may not be adequate for today.” HDInsight Edition 10 - page 21 HDInsights Edition 18 | page 19 Jamie Ashby Head of Management Liability – Asia Pacific HDI Global SE, Australia P: +61 450 004 768 Jamie.Ashby@hdi.global James Guardino Underwriting Manager, Political & Credit Risk – Asia Pacific HDI Global SE, Singapore P: +65 8418 6987 James.Guardino@hdi.global Natalie Miladinski Cyber Underwriting Manager for Asia Pacific HDI Global SE, Australia P: +61 406 864 939 Natalie.Miladinski@hdi.global Watch here: HDInsights LIVE: When Cyber and Political Risk Meet D&O HDInsights LIVE: When Cyber and Political Risk Meet D&O
When HDI opened its Dubai office in mid-2024, the operation consisted of just three people. Less than 18 months later, the team has grown to ten, secured around AUD 36 million in total premiums, and established itself as a rising player in the region's industrial insurance market. Driving that expansion is Willem van Wyk, Senior Executive Officer of HDI Global SE’s Dubai office, who combines deep regional experience with a clearly defined growth strategy in one of the world’s fastestevolving insurance environments. A fast and focused market entry HDI’s move into Dubai gathered pace in October 2023, when van Wyk and his team presented their business case to the HDI Global board. Regulatory approval followed soon after. “Within six months of starting with the regulator in the DIFC, we were granted the licence. We received our licence at the end of July 2024,” van Wyk says. The office’s first underwriting transaction was a highprofile risk: the One Za’abeel development, an architectural landmark of two towers linked by a dramatic cantilever structure. The choice reflected HDI’s broader approach in the region – prioritising quality over volume and long-term relationships over short-term growth. Premiums reached around AUD 6 million in the first four months of operation in 2024. In its second year, the office is on track to write close to AUD 30 million, bringing total secured premiums to roughly AUD 36 million. Initially focused on Property and Engineering, the Dubai team has since expanded into Liability and Power, enabling it to support a broader range of industrial risks. Reputation before volume From the outset, van Wyk’s strategy centred on people and trust. His first two hires set the tone: a renewables specialist from Australia and a well-connected property underwriter with strong regional credibility. “The first year and a bit was all about building a reputation. Forget about the business – more the reputation. We wanted people to believe in us,” van Wyk says. That reputation-first mindset extended to brokers, many of whom were engaged early during the business case phase and treated as partners rather than just distribution channels. Operating under a reinsurance licence, in the beginning HDI adopted a deliberately conservative underwriting strategy, focusing on follow business, smaller layers and excess positions rather than leading large programmes. This cautious approach has helped build credibility while the team deepens its regional expertise. HDI Global SE’s Dubai Expansion: Finding Momentum in the Middle East’s Transformation Finding Momentum in the Middle East’s Transformation With Saudi Arabia’s project pipeline estimated at more than USD 1.8 trillion and the UAE planning hundreds of billions of dollars in infrastructure investment, the Middle East has become one of the world’s most dynamic insurance markets. For HDI Global SE, that momentum is already translating into rapid growth. HDInsights Edition 18 | page 20 “HDI Global Dubai is poised for growth amidst the flourishing economy of the Middle East,” van Wyk says. “Expanding our team and capabilities remains a central focus, and by leveraging our progressive underwriting strategy, we’re ready to meet the region’s demands, particularly in transforming energy landscapes.” Willem van Wyk Senior Executive Officer HDI Global Dubai
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