Page 23 - Insurance Times February 2021

Employee Theft Coverage

Premises Coverage
Transit Coverage
Computer Fraud Coverage
Depositor's Forgery Coverage
Forensic Investigation

Business Interruption
Computer Data Loss and restoration
Extortion

Third-party Coverage
Third-party coverage provide protection to the bank against Lack of a Privacy Law in India
the claims of third party. When a bank experiences a cyber Industry specific Risk
-attack or a data breach, the following events/occurrences
can be covered under insurance: Lack of historical data
Litigation and Regulatory Cost burden in adopting a cyber-insurance cover
Regulatory Response Underlying complexity of calculating premium,
Notification Costs assessment of third Party loses, detecting fraudulent
claims
Crisis management
Difficulty to predict probability of occurrence and
Credit Monitoring
impact of the risk
Media Liability
Having to customize policy covers and premiums for
Privacy Liability each industry

In India, the concept is still at a very nascent stage. As per Lack of predefined standards, metrics of cyber risk
industry reports, there has been a 40 % rise in cyber insurance
insurance policies in 2018 as compared to 2017 which is Ambiguity over the scope and coverage of policies
indicating that customers are becoming more aware of the Absence of a single comprehensive insurance cover
threats being faced by them in the cyber space and that (presence of multiple covers and policies by different
the major threats that the corporations are facing is coming insurers)
from cyber criminals and the integrity of the valuable data
of their clients is being put on stake and risk. The major The Future Course of Action
areas covered by the policy issued in India include:
Ist Party Expenses Looking at the barriers of growth of demand in the cyber
insurance and understanding the gravity it is important that
Privacy and Data Liability
the onus of creating space for the cyber insurance in market
Business Interruption lies with the stakeholders who are getting affected directly
Cyber Theft or indirectly. So stakeholder wise action points are as follows:
o Regulators / Govt. Bodies
Some of the insurance companies providing cyber insurance A. Creating awareness and ecosystem skills in cyber
services in India are Tata AIG, ICICI Lombard, Bajaj Allianz, insurance policies by running awareness programs.
HDFC ERGO and New India Assurance. Incentivizing various organizations through direct
intervention or providing procurement benefits
Barriers to Growth Providing Toolkits and Checklists
Although the concept of cyber insurance looks appealing yet B. Introducing cyber insurance as a measure to
there are certain roadblocks to its full implementations for mitigate risks through National IT and Security
both insurer and the insured. The major problems are: Policy.
The Insurance Times, February 2021