The cyber insurance market is gradually gaining traction in India as corporates have increasingly identified cyber-theft to be amongst the most famous threat to their operations, a report from Data Security Council of India (DSCI) said.
Data from the DSCI report revealed that 350 cyber insurance policies were bought by Indian corporates in 2018 as against 250 in 2017 marking a 40 percent increase in the sale of these products. In this period, the average cost of a data breach in India rose by 7.9 percent to Rs.12 crore.
India between 2016 and 2018 was also the second most affected country from cyber-threats, as per the report.
“As threat surface continues to expand due to rising digitization in the country, ‘Cyber Risk’ becomes pivotal in the overall risk management strategy… And it is not only the large businesses; one of the recent bank attacks of 2018 highlighted the vulnerabilities of co-operative banks in India, bringing into the picture that even small and medium businesses could be victims of attacks,” the report declared.
Rising digitalization of businesses due to the adoption of new technologies by companies, increasing awareness on cybersecurity, new modus operandi for these thefts and apprehensions around implications of GDPR and India’s Personal Data Protection Bill were the main reasons why companies have been buying cyber-insurance policies.
Companies such as ICICI Lombard, HDFC Ergo, Bajaj Allianz were the major sellers of these policies according to the report.