Cyber insurance has witnessed a massive growth of 50% in India amidst rising concerns over malware attacks and other security issues. With the rising threat against online security, many companies including public sector banks have subscribed to cyber risk insurance last year. Increasing demands over cyber security and protection is expected to cause a rapid growth in this insurance cover in the near future.
Mumbai-based insurance broking company Marsh India revealed that cyber insurance cover has increased 50% in the past year. Cyber security cover is available in the Indian market only for the last few years, but this has been in the market for a long time in different countries across the world. We live in an age of online transactions and virtual currencies. High level breaches in companies could result in losses worth millions of dollars. This is one of the reasons behind the popularity of this cover.
This insurance covers losses arising out of cyber attacks or any kinds of data breach. As of now, banks and e-commerce companies are the main users of this cover. Data security is critical to these companies, and they are ready to spend big money in return for potential losses.
Economic Times reported that the current size of the cyber liability insurance market is valued at around Rs.200 crore. In about two years, this value is expected to double in the Indian market. With the increase in various initiatives such as the digitisation of the economy, cyber cover is expected to witness a huge growth in the years after that.
The year 2017 witnessed many online security breaches against some of the top lenders and insurers in the country. For instance, Union Bank of India was attacked and about $171 million was debited from the bank through the SWIFT system. However, the bank acted instantly and got back its money. Multiple cases of ATM machine hacks and data thefts were also reported in 2017.
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