Kathmandu. Demand for cyber insurance in India has been growing rapidly in recent times. Not only that, almost all the old customers have renewed their cyber insurance.
According to Policybazaar, the demand for cyber insurance in India has started increasing due to increased cyber risks and regulatory compliance. “This is poised for sustainable growth not only in large businesses but also in SMEs and emerging industries,” said Eva Saiwal, Head of Liability Insurance at Policybazaar for Business.
A Policybazaar report has shown that almost 100 percent of cyber insurance policies have been renewed in India. Banks, financial institutions and insurance companies, in particular, account for 35 to 40 percent of cyber insurance customers. The report states that 30 percent is from technology and information technology.
Similarly, 25 percent of cyber insurance is from innovative companies, while 5 percent is from healthcare providers.
The Policybazaar report states that the main reason for the high demand for cyber insurance from banks, finance and insurance companies, and technology companies is the increasing cyber risk and regulatory provisions.
Earlier, small and medium enterprises and innovators in India had been ignoring cyber risks. However, the report states that such companies and innovators have also started to be aware of the growing cyber risks in recent times.
While the demand for cyber insurance is on the rise, the claims under it have also increased significantly. Cyber insurance claims account for 45 percent of business interruption claims due to data breaches in India. Similarly, social engineering attacks account for 25 percent, ransomware incidents account for 20 percent, and other causes account for 10 percent.
The dominance of business interruption claims in India makes the role of cyber insurance even more important in ensuring business continuity, the report states.
