Tokio Marine Kiln warns of cyber insurance gaps in manufacturing

Tokio Marine Kiln Group Ltd. (TMK) Asia has warned of a growing protection gap in the manufacturing sector, where cyber insurance and property policies may fail to cover physical damage caused by cyberattacks.

As factories adopt Industry 4.0 technologies—including automation, artificial intelligence, and cloud-based operations—the risk of ransomware attacks affecting operational technology increases. Such attacks can halt machinery, disrupt production, and break supply chains. The Asia-Pacific region, which accounts for over half of global manufacturing output, was responsible for approximately one-third of global cyber incidents in 2024, representing a 13% year-on-year increase.

In the region, manufacturing has become the most targeted industry, with system intrusion attacks rising from 38% to approximately 80% of breaches. Experts note that while these technological advancements improve productivity, they also expand the attack surface for disrupting physical processes and compromising intellectual property.