Insurance policies

Cybersecurity insurance policies see growth due to increase in cyberattacks

Chennai: Insurance companies are witnessing a growth in the individual, corporate and commercial segments of cyber security insurance policies owing to the increase in the number of cyber attacks.
While Bajaj Allianz General Insurance has seen a 30% increase in the number of cyber business insurance policies since 2018, Tata AIG General Insurance is seeing double-digit vertical growth in commercial cyber insurance since the product launched in 2014. For ICICI Lombard, cyber business Liability insurance is one of the most sought after products during the pandemic period due to the surge in the number of cyber attacks in India and across the world.
According to reports, India ranked third in the number of data breaches detected globally in 2021, with nearly 8.7 billion breaches reported between January and November last year.
Cybersecurity insurance policies cover a range of areas, including cyberbullying and extortion/ransomware, legal fees, data restoration costs, identity theft and phishing. While cyber insurance was once a product for large enterprises among the high-risk sectors of healthcare, finance, professional services and IT, recent trends have highlighted the increase in spending on cybersecurity among small and medium-sized businesses, according to insurance industry sources.
One of the main reasons for this increase is because the cost of recovering from a cyberattack has become dramatically high. “In these scenarios, a cyber insurance policy can act as a life jacket and could prevent a business from heading into insolvency,” said Najm Bilgrami, Vice President and Head of Financial Lines, Tata AIG General Insurance .
Demand for people looking for cyber insurance has also skyrocketed, which provides coverage for protection against several issues including cyber fraud, social media liability, malware attacks and spoofing. of identity. According to insurance industry sources, the policy’s basic coverage is only for individuals and not the device they use.
TA Ramalingam, CTO of Bajaj Allianz General Insurance, said the individual segment growth is around 20%. “Our individual cyber insurance policy has seen significant growth of over 100% since its launch. This indicates the growing awareness and need for cyber insurance,” he said.
Sanjay Datta, Head of Underwriting and Claims, ICICI Lombard, GIC, said: “We have also seen an increase in usage in individual cyberspace due to an individual’s increased digital footprint and the perils that support connected life, such as identity. theft, cyber-harassment and fraudulent use of financial platforms.
According to Tarun Mathur, CBO-GI, Policybazaar.com, an online insurance platform, the cyber insurance market is expected to grow globally at a CAGR of 27% from 2017 to 2024. India in 2014 and since it continues to grow with research indicating that the country should spend up to $3 billion on cybersecurity in 2022,” he added.

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