Page 38 - Insurance Times April 2020

CYBER THREATS &

GROWING

IMPORTANCE OF

CYBER INSURANCE

IN INDIA

Abstract:
Digital revolution is disrupting every sphere of life. While the technological progress is empowering the society, but
there are risk & uncertainties that accompany such digital advancements. Cyber-attacks &crimes are emerging as one
of the biggest challenges in the present scenario. The cybercrimes are becoming more & more sophisticated and the
regulatory environment tries to develop holistic risk management strategy despite several preventive measures cyber
breach is being reported. This prompted the development of "Cyber insurance". It helps in mitigating risk exposure by
offsetting the cost after a breach and helps in improving the resilience of the company. This article deals with the
concepts of Cyber insurance, reason for growing importance and future trends of the cyber insurance in India.

The growing pace of digitalization in India is increasing the Businesses in India have rated cybercrime as the most
threat of cyber risk. There are more than 560 mn internet important risk factors. Majority of them rely on digital tools
users, 294 mn social media users and India is the 2nd largest for meeting their business objectives. Coincidently,
market in terms of download of mobile applications. Report fraudsters target these critical and sensitive digital assets.
suggest that India is 2nd most affected country in world by
cyber-attacks during the period 2016-18. Major Drivers for Cyber security meas-
ures:

About the author  Raising digitalisation in business due to use of Internet
of Things, modern banking channels, E-mails, internet
etc.
R Sumitra
 Evolution of critical cyber threats like malware and
Senior Manager (Faculty)
Bank of Baroda ransomware attacks targeting business houses.
 According to the report by Reserve Bank of India, the

38 The Insurance Times, April 2020