INTRODUCTION
Cyber Insurance is a risk management and mitigation strategy having a corollary benefit of improving the adoption of preventive measures (products, services, and best practices), thus, helping improve the cyber security posture of organisations, and thereby the country as well.
In Simple words cyber insurance is a type of insurance that helps protect you or your business if something goes wrong online.
Examples
If a hacker steals your data or your website gets attacked, cyber insurance can help:
- Pay for fixing the problem
- Cover financial losses
- Help recover lost data
- Sometimes even pay legal costs
COVERAGE OF CYBER INSURANCE:
It defers from Insurer Company to Company but general coverages are as follows:
1. Regulatory Coverage
2. Liability Coverage
3. Cyber Extortion and deceptive fraud transfer or extra expenses
4. Data replacement/ recovery costs
KEY STAKEHOLDERS INVOLVED IN CYBER INSURANCE:
- The Insured (First Party)
Buyer of Cyber Insurance Policies
- Broker
A broker acts on behalf of the buyer
- Carriers/ Insurance Providers (Second Party)
A Carrier is an insurance provider.
- Reinsurers
Another Insurance Company that takes care of the risks to the primary carrier.
- Cyber Security Product/Service Provider
A tech company that provides cyber risk assessment. Technology firms are also engaged to conduct forensics and/or incident response services post a breach
GLOBAL SCENARIO OF CYBER INSURANCE:
As per the OECD Data, 2016 85% premiums written on behalf of Companies of the United States and 9% premiums written on behalf of European Companies.
The key sectors which insured IT Sector, Retail, healthcare, Manufacturing etc.
CYBER INSURANCE IN INDIA:
To address cyber risks and provide a more comprehensive and meaningful cyber cover, Cyber Insurance as a standalone product was first introduced in 2014. There was approximately 40% growth in the selling of cyber–Insurance Polices in India between the year 2017 and 2018. Approximately 800 to 1,200 Companies have Cyber Insurance Policies.
India has millions of companies, but only a tiny fraction are insured. There are few reasons for no. is low
Lack of awareness among SMEs
Cost concerns
Misunderstanding of coverage
Still an emerging insurance segment
CONCLUSION:
Cyberattacks like ransomware, phishing, and data breaches are increasing rapidly worldwide. Attacks can halt operations, steal data, and damage systems Even small businesses are now common targets—not just big companies Without insurance, recovery costs come directly out of your pocket.
Author Bio
keep it up good work
Thanks