Page 21 - The Insurance Times May 2025

Costs: Comparing Cyber Insurance with Self-Financing
Organizations can benefit significantly from cyber liability insurance, as illustrated in the comparison below:

Incident Type Expected Cost Coverage Provided Cost with insurance
Without Insurance by Insurance (Including Premium)
Ransomware Rs. 3,25,000 Rs. 3,25,000 Rs. 6,00,000 (Premium Cost)
Attack (Fully Covered)
Data Breach Rs. 12,00,000 Rs. 10,00,000 Rs. 8,30,000 (Premium Cost +
(Partially Covered) Rs. 2,00,000 uncovered costs)
Combined Rs. 15,25,000 Rs. 13,25,000 Rs. 18,30,000 (Premium Cost +
Cyber Incidents (Covered) uncovered costs)

This table demonstrates how insurance mitigates financial risks, though premiums and uncovered costs remain factors to
consider.

The Expanding Cyber Insurance Market insurance may reduce investments in preventive measures-
requires regulatory reforms, including mandatory breach
Globally, the cyber insurance market has witnessed substan-
reporting and standardized policies, to improve efficacy.
tial growth, expanding from $7 billion in 2020 to $14 billion in
2023, with projections indicating it will reach $22.5 billion by Conclusion: A Strategic Necessity
2025. In India, demand for cyber insurance reflects the high
cost of cyberattacks. Small and medium-sized businesses (SMBs) In the age of digital transformation, integrating robust
are particularly vulnerable, with 56% of claims originating from cybersecurity measures with comprehensive cyber liability
this sector and an average claim cost of $345,000. Recent sta- insurance is no longer optional-it is a modern imperative.
tistics underline the urgency for robust defenses: This dual approach ensures resilience against cyberattacks,
79 million cyberattacks in India (2023), making it the compliance with legal requirements, and preservation of
third most targeted nation globally. trust in an evolving threat landscape. Cybersecurity and
cyber liability insurance are fundamental components of
33% of incidents targeting the technology sector.
sustainable, secure enterprises.
60% surge in phishing attacks affecting the finance and
insurance industries. By embracing this strategic necessity, organizations can
better prepare for the challenges and opportunities of the
369 million malware incidents detected in 2024.
future, safeguarding their digital ecosystems while foster-
Strengthening Cybersecurity Frame- ing growth and innovation.

works in India References:
The Indian government has taken proactive measures to Packetlabs. "239 Cybersecurity Statistics (2023)." Avail-
enhance cybersecurity. Initiatives such as the IT Act of 2000, able at: www.packetlabs.net.
the National Cyber Security Policy of 2013, and the recently Forbes Advisor. "Cybersecurity Stats: Facts and Figures You
introduced Digital Personal Data Protection Act aim to cre- Should Know." Available at: www.forbes.com/advisor.
ate a secure digital ecosystem. CERT-In plays a pivotal role World Economic Forum. "Global Cybersecurity Outlook
in incident response, while global frameworks like ISO/IEC 2023." Available at: www.weforum.org.
27001 provide systematic approaches to managing informa- CoinLaw. "Cyber Insurance Industry Statistics 2025:
tion security risks. Growth, Trends, and Data." Available at: www.coinlaw.io.
BeInsure. "2025 Global Cyber Insurance Industry Out-
Insights from academic research emphasize the look & Growth Opportunities." Available at:
complementarity between cybersecurity and cyber liability www.beinsure.com.
insurance. Technavio. "Cyber Insurance Market Growth Analysis -
Size and Forecast 2025-2029." Available at:
Addressing challenges like moral hazard- where reliance on www.technavio.com.

20 May 2025 The Insurance Times