The increasing frequency of cyberattacks has also increased awareness about cyber security, and ways that losses can be mitigated in case of an attack.
According to a Gurgaon-based insurance brokerage and risk advisory firm – that counts e-commerce and mobile wallet companies among its clientele – it has seen a 200% increase in demand for cyber insurance in 2017, as compared to 2016.
The situation has drastically changed from what it was three or four years ago. As the firm says that nowadays they are getting calls from clients asking them about ways on how they can secure themselves from cyberattacks. It is noteworthy that these clients mainly consist of e-commerce companies and those firms that deal especially in third-party data.
Last year, the WannaCry ransomware attack wreaked havoc worldwide, with India figuring in third position among the worst-hit countries according to a study by Kaspersky Lab. The risks involved in a cyber security breach are immense, as they can lead to loss of valuable information and consequently a loss in market share to competitors.
Cyber insurance is a cover that insures the insured against loss of intellectual property, damage/loss of data, cyber extortion, network downtime, data breach etc. The insurance company first does an assessment of the client company and where it stands with regards to cyber security and data protection. Once this assessment is done, an appropriate cover is devised.
*Source: Times of India
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