BimanowBimanow
  • Home
  • Vehicle Insurance
    • Four Wheeler
    • Two Wheeler
  • Health Insurance
  • Life Insurance
  • Other Insurance
    • Home Insurance
    • Travel Insurance

Subscribe to Updates

Subscribe to our Newsletter for the latest update.

Thank you!
What's Hot

Invest in guaranteed return plans for higher returns and financial security

September 9, 2022

How To Initiate A Life Insurance Claim Upon Maturity?

September 8, 2022

Insurance claims independent of human errors, say industry players

September 7, 2022
Facebook Twitter Instagram
BimanowBimanow
Facebook Twitter Instagram LinkedIn
  • Home
  • Vehicle Insurance
    1. Four Wheeler
    2. Two Wheeler
    3. View All

    How Do You Get Insurance When Buying a New Car?

    August 25, 2022

    Premium based on your Driving Behavior

    July 25, 2022

    Advantages and Disadvantages of Car Insurance Brand Loyalty Discount

    May 30, 2022

    Third-party Insurance Rates Hiked from June

    May 27, 2022

    Does bike insurance policy cover fire damage

    September 3, 2022

    All you need to know about passenger cover in two wheeler insurance

    August 6, 2022

    Why to renew two wheeler insurance before monsoon

    August 1, 2022

    How to Select the Most Appropriate Two-Wheeler Insurance Policy in India

    July 27, 2022

    How can EV insurance be normalised?

    September 6, 2022

    Does bike insurance policy cover fire damage

    September 3, 2022

    How Do You Get Insurance When Buying a New Car?

    August 25, 2022

    All you need to know about passenger cover in two wheeler insurance

    August 6, 2022
  • Health Insurance

    How much health insurance do you need?

    September 2, 2022

    How To Cover Your Entire Family Under Health Insurance?

    August 30, 2022

    5% GST on hospital room rent: How will it impact health insurance policyholders?

    August 13, 2022

    Can Life Insurers Offer Health Plans?

    July 22, 2022

    Why Stick To Standard Health Insurance Policies When You Can Create One On Your Own?

    June 17, 2022
  • Life Insurance

    Invest in guaranteed return plans for higher returns and financial security

    September 9, 2022

    How To Initiate A Life Insurance Claim Upon Maturity?

    September 8, 2022

    Term Insurance Plan under MWP Act: How to buy and why it is important

    September 1, 2022

    Importance of Insurance And Term Life Insurance FAQs You Need To Know

    August 31, 2022

    How to Choose the Amount of Coverage You Need for Term Insurance

    August 26, 2022
  • Other Insurance
    1. Home Insurance
    2. Travel Insurance
    3. View All

    Home Insurance: Take cover for your home and its contents, too

    June 13, 2022

    Securing a Home Loan Liability: Home Loan Insurance or Term Policy?

    April 27, 2022

    Handy Tips When Choosing Home Insurance Policy in India

    April 15, 2022

    Home Insurance Quotes: How to Evaluate Them Online?

    April 6, 2022

    Here’s How Your Personal Accident Insurance Policy Can Protect Your Financial Well-Being

    September 5, 2022

    12 Travel Tips For a Stress-free Holiday

    May 12, 2022

    Everything You Should Know- Universal Travel Pass

    April 8, 2022

    Travel Insurance – Travel With CARE

    April 4, 2022

    Insurance claims independent of human errors, say industry players

    September 7, 2022

    Here’s How Your Personal Accident Insurance Policy Can Protect Your Financial Well-Being

    September 5, 2022

    Irdai wants life insurance firms to eye 50% premium growth in 5 years

    July 16, 2022

    Effective cybersecurity requires more than an insurance plan

    July 13, 2022
BimanowBimanow
Home»News»Cyber insurance on rise as attacks surge
Cyber insurance
News

Cyber insurance on rise as attacks surge

August 29, 2022No Comments5 Mins Read
Share
Facebook Twitter LinkedIn Pinterest WhatsApp Email

India Insurance is increasingly looking at dedicated cyber security insurance covers to address pervasive cyber threats including malware attacks, compromised emails, cryptojacking, or instances of disgruntled employees or adversaries attacking software systems and machinery.

India Inc.’s cyber insurance coverage varies from $1 to $100 million per year and is expanding at a 35% yearly rate. According to analysts, cyber insurance is India’s fastest-growing insurance industry.

While banks, non-banks, and information technology services firms were the first to purchase cyber insurance policies due to their increased exposure to digitally-connected systems and the need to protect financial transactions, startups and manufacturing firms are now realising the importance of such policies, particularly post-pandemic, as they digitise their entire production and billing processes. “Over the last two years, the cyber insurance sector has grown at a CAGR (compound annual growth rate) of 30-35%.” Cyber insurance alone now generate over 300-400 crore for insurers. Cyber insurance sales account for at least 2-5% of total new premium collection.

The cyber insurance industry is increasing at a rate of more than 50%, according to Sanjay Datta, head of underwriting, reinsurance, and claims at ICICI Lombard General Insurance Co. Ltd. The high growth rate is partly owing to a low base, since insurance coverage for a company’s digital assets was inadequate three years ago due to a lack of awareness. Assets are often worth 50-100 times the yearly cyber insurance cost.

 

The insurance premium is determined by the size of the organisation, and consulting firm Aon estimates it to be between $1 million and $100 million in India. According to Ramalingam, the premium amount is determined by a company’s turnover, loss likelihood, and the availability of suitable IT backup solutions. “The premium for global corporations is bigger than the premium for local firms,” he noted.

According to industry observers, two years after the pandemic, the industrial sector, which was obliged to automate activities ranging from invoicing to procurement, is one of the important areas to purchase cyber insurance.

However, owing to the frequency of cyber assaults and the severity of loss ratio during the previous three years, cyber insurance premium costs have climbed by more than 50% in the last year.

Cyber thieves often cause firm management to suspend production and payments via malware assaults, and the whole organisation grinds to a halt, resulting in severe revenue losses.

Following a ransomware cyber-attack, a manufacturing giant that had purchased cyber liability insurance. “It provided coverage for business interruption losses, forensics expenditures, and so forth.” Our cyber claims specialists responded within the ‘Golden Hour,’ minimising system damage and limiting business interruption damages. Concurrently, we hired forensic specialists to determine the amount of ransomware infection in the system and assisted the organisation in resuming operations. “The coverage covered damages resulting from business disruption, forensic expert costs, and ransomware-related charges.

According to a leading cyber insurance counse:

On December 31, 2021, workers of a manufacturing business got an email from the HR department informing them that the company was sending them gift vouchers. The majority of staff, including the CEO, clicked on the link, which turned out to be malware that knocked the company’s systems down. “There is a substantial increase in demand for cyber insurance in India, with a potential CAGR of more than 40% over the next three years,” said Prasanna Kumar, executive vice president and head of Aon’s financial services and professional business.

According to Kumar, there is a need for cyber professionals who can advise customers on how to handle their demands. “The requirement for forensic experts, legal counsel, and incident response specialists is vital.”

According to Deloitte, cyber insurance is an uncommon and “complex” skill set. “Unlike traditional insurance, there is no historical data for cyber insurance, and a new hazard appears every other day,” said Anand Venkataraman, partner, Risk Advisory, Deloitte India.

A cyber insurance underwriter must be knowledgeable with the insurance industry as well as cyber assaults, which are a relatively new phenomenon.

While ransomware remains the most common kind of threat, email exposes by disgruntled workers and cryprojacking (when the attacker takes control of terminals and mines cryptocurrency illegally) are gaining popularity.

“At the moment, there are two sorts of products: corporate cyber liability plans and retail cyber liability policies for individual buyers.” “There is also a rising B2B2C market where a company buys a policy for its consumers or offers them to purchase it on their own platform or application.”

According to Datta, around 3,000 corporations purchase cyber insurance plans, while individuals have over 20,000 coverage. The rise of digital payments has increased the need for additional cyber insurance.

READ ALSO: How to Choose the Amount of Coverage You Need for Term Insurance

“The business prospects and demand for cyber insurance will be quite strong owing to the increasing usage of technology on a daily basis, as well as the constantly changing and dynamic nature of the hazards that it represents.” “We anticipate that even the most cyber protected organisations would choose for cyber insurance as a residual risk transfer mechanism,” Datta said.

Featured

Related Posts

Invest in guaranteed return plans for higher returns and financial security

September 9, 2022

How To Initiate A Life Insurance Claim Upon Maturity?

September 8, 2022

Insurance claims independent of human errors, say industry players

September 7, 2022
Add A Comment

Comments are closed.

Bimanow – All Things Insurnce
Recent Posts
  • Invest in guaranteed return plans for higher returns and financial security
  • How To Initiate A Life Insurance Claim Upon Maturity?
  • Insurance claims independent of human errors, say industry players
  • How can EV insurance be normalised?
  • Here’s How Your Personal Accident Insurance Policy Can Protect Your Financial Well-Being
Don't Miss

Invest in guaranteed return plans for higher returns and financial security

September 9, 20225 Mins Read

In contrast to a high-risk, high-reward strategy, guaranteed return plans provide you with future assurance.…

How To Initiate A Life Insurance Claim Upon Maturity?

September 8, 2022

Insurance claims independent of human errors, say industry players

September 7, 2022

How can EV insurance be normalised?

September 6, 2022
Stay In Touch
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • LinkedIn
Our Picks

Invest in guaranteed return plans for higher returns and financial security

September 9, 2022

How To Initiate A Life Insurance Claim Upon Maturity?

September 8, 2022

Insurance claims independent of human errors, say industry players

September 7, 2022

How can EV insurance be normalised?

September 6, 2022

Subscribe to Updates

Subscribe to our Newsletter for the latest update.

Thank you!
About Us
About Us

Bima Now is the best source for finding all information related to Insurance in India. We are not affiliated with any single insurance provider as we aim to give you the most authentic information.

Email Us: [email protected]

Facebook Twitter Instagram Tumblr LinkedIn
Our Picks

Invest in guaranteed return plans for higher returns and financial security

September 9, 2022

How To Initiate A Life Insurance Claim Upon Maturity?

September 8, 2022

Insurance claims independent of human errors, say industry players

September 7, 2022
© 2023 Aneemarcom. Designed by Aneemarcom.
  • Home
  • About Us
  • Insurance
  • News
  • Contact Us

Type above and press Enter to search. Press Esc to cancel.

Go to mobile version