Page 19 - Insurance Times February 2021

International

Policy standardization to According to the Indian Computer the Asia-Pacific region is projected to
provide impetus to Emergency Response Team (CERT-In), grow from US$1.2 trillion in 2019 to
the number of cyberattack incidents in
US$1.5 trillion in 2023, according to
cyberinsurance market in India increased from 50,362 in 2016 to GlobalData, a leading data and
India 394,499 in 2019. It is expected to analytics company.
increase by more than 100% in 2020,
The Insurance Regulatory and with 696,938 cyber security incidents GlobalData’s insight report, ‘Global
Development Authority of India’s already reported as of August 2020. Life Insurance Market to 2023’, reveals
(IRDAI) plan to standardize The demand for cyberinsurance that life insurance in the Asia-Pacific
cyberinsurance product is expected to policies is gaining traction in India, with region will grow at a compound annual
give impetus to its growth in the organizations across sectors looking to growth rate (CAGR) of 4.9% during
country, according to GlobalData, a avail cyberinsurance covers. In July 2019–2023, supported by aging
leading data and analytics company. population and an expanding middle-
2020, HDFC Bank Ltd. and State Bank class population with a growing
There has been a significant rise in of India disclosed having a US$100m disposable income.
cyberattacks and data security cyber risk cover.
incidents since the outbreak of the At present, there are no Pratyusha Mekala, Insurance Analyst
COVID-19 pandemic. The IRDAI has cyberinsurance specific product at GlobalData, comments: “Despite
passed an order on 19 October 2020 regulations and there is no standard the disruption due to the COVID-19
to constitute a working group to cyberinsurance policy in India. Cyber pandemic, several countries are now
evaluate critical issues involving the cover is typically offered as a highly seeing gradual recovery following the
legal aspects of cyberinsurance. This customized policy; as general liability lifting of lockdown restrictions. In
group will examine incidents involving policies do not cover cyber risks. Singapore, positive economic activity
cyber security and possible insurance from Q3 2020 aided in recovery in
coverage for such cyberattacks. It will Ms Kaithwar concludes: “The tedious demand for life insurance products.
also study the feasibility of developing purchasing and claim settling process Similarly in Hong Kong, total premiums
a standard cyberinsurance policy. has led to low sales of cyberinsurance of long-term in-force policies increased
policies in India. Introduction of by 5.1% year-on-year during the first
Epsa Kaithwar, Insurance Analyst at structured policy and regulation is three quarters of 2020.”
GlobalData, comments: “With growing expected to simplify product offerings,
number of businesses increasing their which will support cyber insurers To drive sales, several life insurers are
dependence on technology and growth over the coming years.” offering COVID-19 specific riders which
working remotely due to the provide diagnosis and death benefits.
pandemic, several organizations have Asia-Pacific life insurance The Life Insurance Association of
become highly vulnerable to cyber market to reach US$1.5 Malaysia extended additional relief
attacks. This has led to an increase in measures such as cash benefits and
the demand for cyberinsurance trillion in 2023 lump-sum death benefits for
policies.” The life insurance written premium in policyholders diagnosed with COVID-
The Insurance Times, February 2021