Page 39 - Insurance Times April 2020

volume of cyber frauds especially in banks has doubled cyber-attacks. It must develop sound business continuity
in a year. Total cases of cyber fraud reported in the year plans to overcome any cyber threats and recover after cyber
2017-18 was 2059 amounting to Rs.109.6Crs against breach.
1372 cases amounting to Rs.42.30 Crs in the year 2016-
17. Government initiatives: Government of India has taken

 Lack of awareness about cyber space & the threats. several measures to strengthen cyber space. Some of the
initiatives are launch of National Cyber Security Policy,
How to combat Cyber security threat: setting up of National Cyber Security Coordination Centre

Up -skilling: Cyber security is not the sole responsibility of IT (NCSCC), National Critical Information Infrastructure
Protection Centre (NCIIPC) and Cyber Swachhta Kendra etc.
department of an organisation, rather each staff members Cyber Insurance: Steps to improve cyber security
must be aware of the cyber-attacks and act diligently. It is preparedness alone cannot protect an entity, what is
necessary to create awareness among the staff members required further is insurance policies that can offset financial
about the crime-taking place in cyber space from time to loss when breach occurs. Cyber insurance is proving to be a
time. key tool in risk management and cost offsetting measure

Organisational understanding: Every entity must try to for business entity.
develop a policy on cyber security and must work within the
guidelines laid down in the policy. It may include measures Cyber Insurance - Road Ahead:

like restriction on sharing of official data, restriction on access Cyber Insurance is one of the fastest growing business in the
to sensitive information, data management system etc. Insurance industry. With the increase instances of cyber-
attacks, it is no longer just the matter of IT industry. Several
Continues monitoring: Continuous monitoring mechanism survey suggests that, cyber risks has emerged as one of the
should be adopted to provide proactive and real time alerts important agenda in board meetings of several corporates.
of cyber security related events. The impact of cyber-attacks can be significant ranging from

Responsive: Appropriate measures to be implement reputational loss to financial loss. CISCO 2018, Annual cyber
immediately upon detection of cyber-attacks to prevent security report stated that of all cyber-attacks resulted in
major loss. financial damage of over USD 5.00 lacs, other risks include
- loss of brand reputation, litigations, loss of customer base
Perpetual planning:Business Entity must be resilient to and market base etc.

Figure 1 Stakeholders in cyber insurance, source secondary data
The Insurance Times, April 2020 39