Welcome back to Continuum Risk Update
Every Friday we pull the top Asia headlines on digital-asset regulation, cyber risk, industry moves and insurance signals, with concise takeaways and practical actions for insurers and corporate risk teams.
1) Regulatory
Pakistan passes Virtual Assets Act 2026
Parliament formally established PVARA as the national crypto regulator on March 7, introducing mandatory licensing for exchanges, custodians and token issuers. Unlicensed operations now face fines of up to PKR 50 million and prison terms of up to five years — a dramatic reversal from the country’s 2018 crypto ban.
India debates regulatory models for crypto assets
A new report from Gujarat National Law University proposes five potential regulatory models for digital assets, highlighting the current lack of statutory clarity in India despite taxation and AML rules already applying to crypto activities.
2) Hacking & Physical Risks
Crypto theft declines but attackers shift tactics
Security data from February suggests a significant decline in hacking losses compared with earlier months, with around $49 million stolen across major incidents, down sharply from previous levels.
AI drives 59% surge in APAC ransomware
Over 770 organisations across Asia-Pacific were named on ransomware leak sites in 2025, a 59% year-on-year increase, with East and Southeast Asia recording the sharpest jump globally at 71%. New groups including NightSpire and Crypto24 directed up to half their attacks at APAC targets, and attackers are now using data breach regulations as leverage during ransom negotiations.
3) Industry & Markets
When AI gets it wrong insurers examine professional liability exposure
As companies increasingly rely on AI systems to support advisory work and operational decision-making, insurers are evaluating how errors generated by these tools could trigger professional liability claims. While AI can improve efficiency, responsibility for outcomes still rests with the organization deploying the technology, raising questions around how existing Professional Indemnity and Technology E&O policies respond when AI-driven outputs lead to financial loss.
Warburg Pincus explores sale of Southeast Asian digital insurer Oona
The US private equity firm is working with Citigroup to review strategic options for Oona Insurance after receiving interest from other insurers and investment firms. A transaction could value the Southeast Asian digital general insurer at several hundred million dollars, signalling growing institutional appetite for insurtech assets in the region.
4) Insurance Spotlight
Geopolitical tensions accelerating cyber insurance demand across Asia
GlobalData research shows 27.4% of insurance professionals expect cyber insurance to see the strongest demand increase as geopolitical pressures escalate. Swiss Re projects global cyber premiums will reach $16.4 billion in 2026, with APAC underwriting scrutiny intensifying around governance, incident response maturity and third-party controls.
Cyber and data insurance identified as defining APAC trend for 2026
Kennedys’ newly appointed Asia-Pacific regional managing partner James Melvin flagged cyber and data insurance as the key growth line for the region, warning that insurers’ rapid AI adoption is introducing new risks around bias, hallucinations, IP liability and vulnerability to cyberattacks.
