Perspective and Growth of Cyber Insurance

Manveet Singh, CA Arvinder Pal Singh Arora

Many organisations believe that their current insurance policies would cover them against cyber breaches too, but that is not the case. Various kinds of policies like for general liability, property, or even casualty policy, do not cover the risk of a cyber attack. Cyber crime is growing, due to low risk of being caught and high returns from breaching & accessing intellectual property and more from the network. No type of company is free from cyber crime. In 2014 alone, 60% of small companies and 81% of large companies saw a cyber breach onto their network. Average damage of a breach to a large company is $5.9 million (₹37.65 crore), and $410,000 (₹2.60 crore) to a small company. Insurers are keeping a tight check on their cyber risk exposure using pricing strategies and offered terms and conditions, but this makes their clients question value of the policies they hold. The insurers and reinsurers need respond and offer a solution to the opportunity they have in front of them.