Cyber insurance in India is at a nascent stage and there is an effort required
to create an awareness about its critical role in countering cyberattacks:
A
report prepared by US-based
Allied Market Research put the
cyber security market size at
$104.60 billion in 2017 and projected to
grow to $258.99 billion by 2025, a CAGR
of 11.9% from 2018 to 2025. As cyber
threats become universal, finding security
solutions too have become critical.
Alongside, corporates have become aware
of the relevance of cyber insurance as
the threats change faster and solutions
sometimes become inadequate. Today,
protecting the computing environment
is almost obsolete and security experts
are looking at having a strong cyber
security governance in place marked by
coordinated efforts to make the entire
information ecosystem penetration-proof
and having strong cyber insurance cover.
In fact, cyber insurance sits atop all other
security measures, which are prone to
fail at some time or other, and there areexpenses towards retrieving the system
and meeting damages on account of
litigation initiated by affected customers.
Cyber insurance, especially for banks and
financial services institutions, is expected
to cover the main concerns and protect
and business loss in case of a cyber attack.
Ideally it covers first-party and third-
party liability.
Anurag Rastogi, member of executive
management, HDFC ERGO GeneralCover Story