Page 25 - Insurance Times February 2021

C. Creation of Cyber Incident Data Register for referral policies to the customer so that they can have a
purpose assessable to cyber cell and networking clear understanding of the policy
experts. o Buyers
D. Promoting actuarial science for better modeling A. Regularly undergo cyber risk evaluation to
of cyber risks understand system vulnerability
E. Creating Crisis Response Team at national and State B. Creation of Cyber Risk Committee to have a better
level by government and at corporate level by understanding of cyber risk
Private entities to meet any future cyber threats Conclusion
and instances.
Though Cyber Risk Insurance is at a nascent stage in India,
o Tech Firms but looking at the instances of cyber frauds across the globe
A. Setting up of sector-specific cyber risk assessment it is soon going to occupy a prominent place in the insurance
framework market and will soon be most sought after insurance
B. Offer Industry specific customized products and product. Many organizations at present are not adopting it
services. as they find it inapplicable for their organization but it may
soon become unavoidable. The need of the hour is to have
o Brokers a proper risk assessment of the threat and mitigate the same
A. Increase awareness about the product amongst by adopting a comprehensive cyber insurance policy so that
consumers and user of IT products. the CIA triad can be well established and the customer DATA
B. Clearly define the provisions of the cyber insurance can be well protected.

Liability insurance industry in Asia-Pacific to reach US$33.4bn in
2023, says GlobalData

The liability insurance industry in the Asia-Pacific region is projected to grow from US$28.8bn in 2019 to US$33.4bn in
2023, in terms of written premiums, according to GlobalData, a leading data and analytics company. GlobalData’s insight
report, ‘Global Liability Insurance Market to 2023 – Overview, Key Trends, Regulatory Developments and COVID-19 Impact
Analysis’, reveals that the liability insurance industry in Asia-Pacific is expected to grow at a compound annual growth rate
(CAGR) of 3.8% over 2019–2023, supported by the demand for insurance covering the commercial sector such as workers’
compensation, professional/management liability (directors’ and officers’ – D&O) insurance and cyber-breaches.
Manisha Varma, Insurance Analyst at GlobalData, comments: “The demand for D&O policies is driven by increasing
risks from environmental, product recall and libelous claims. Increasing number of cybercrimes has driven the demand
for cyber-insurance.”
In China, the demand for D&O insurance grew due to the rise in legal risk exposure following COVID-19. The enactment
of new law of collective litigation in China supported D&O insurance as it created a mechanism for bringing collective
proceedings against C-level executives for securities disputes. In Hong Kong, the demand for D&O insurance remained
strong due to increasing political risk and violence. Increase in claims and contentious lawsuits due to business closures,
insolvencies and disruption in continuity of operations in 2020 led to an increase in premium prices for liability insurance.
In Australia, along with the pandemic, the ensuing financial sector crisis resulted in few accounts experiencing more
than 100% price increase in D&O renewals in 2020.
Ms Varma continues: “The regions’ vulnerability to cybercrimes has increased due to digitalization. Remote work culture
and a shift to digital platforms due to COVID-19 has exposed businesses and individuals to greater cyber-risks, driving
the demand for cyber-insurance.”
Consequently, regional insurers have expanded their proposition to accommodate increasing demand for cyber-
insurance. For instance, Bajaj Allianz General Insurance in India collaborated with e-commerce company Flipkart in
September 2020 to offer 'Digital Suraksha Group Insurance' providing cover against financial losses caused due to
cybercrimes. Ms Varma concludes: “Regulatory developments, increasing risks due to shift of business to digital platforms
and remote working culture is expected to support the demand for liability insurance products over the next few years.”

The Insurance Times, February 2021