Cyber Insurance policy protects financial losses of businessmen and individuals from several digital age threats.
A sharp increase in digital transactions has led to a sharp increase in post-pandemic cyber frauds. In response, more businesses and individuals are choosing cyber insurance policies to guard against financial loss brought on by the leakage of any confidential data.
Cyber Insurance policy protects financial losses of businessmen and individuals from several digital age threats such as phishing, malware attacks, social media breach and more.
“Cyber insurance has gained momentum after the pandemic because the number of e-transactions increased significantly. And with that came the risk of cyber fraud. So, there is an increased demand for cyber insurance, not only by the corporates but also by retail customers, who are becoming very aware of it,” says Rajesh Kumar Sharma, CEO and Principal Officer, Anand Rathi Insurance Brokers.
According to data from the Reserve Bank of India (RBI), the share of digital payments in total payments increased to 96.32 per cent at the end of FY22 from 95.4 per cent in FY20. The RBI Digital Payments Index, which tracks digital payments, was up 29.08 per cent, to reach an all-time high of 349.3 points in March 2022 from 270.59 points a year ago.
The Insurance Regulatory and Development Authority of India (IRDAI) last year published recommendations for a sample cyber insurance policy for individuals that general insurers are advised to abide by in light of the rise in fraud.
“An individual should buy a cyber-insurance policy because anything and everything, from his wealth to savings, is prone to be lost due to cyberattacks, These policies are also available at an affordable rate. For example, the premium charged by Bajaj Allianz for a sum assured of Rs10 lakh is Rs2,848 (exclusive of GST). This product is also offered by other insurance companies and some of these are Tata AIG, ICICI Lombard, and New India Assurance,” says S.K. Sethi, Director of RIA Insurance Brokers, and the author of the book 1 Cyber Attack Can Ruin You Forever.
It is always advisable to purchase a cyber insurance policy to protect both you and your company given the increase in cyber threats.
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