Cyber Risk Insurance-An Indian Perspective.

Abstract

Standing in the 21st century, technology forms an integral part of our lives. With increased dependence on technology, individuals and businesses are constantly exposing them towards more cyber risks and frauds. Cyber Fraud incidents lead to significant loss in Business Value, Customer, Reputation, non-compliance, theft of Intellectual Property and Financial losses. Companies adopt to various cyber security frameworks and standards to prevent risk from cyber threats, thus, trying to mitigate the harsh impacts of a breach. Despite of adopting such security measures, no organization is 100% protected. Organizations try to mitigate or reduce the impact of risk by transferring some of the risks to Cyber Insurance Providers by purchasing Cyber Risk Insurance. India at its present situation is lagging behind in cyber security policies and hence at a vulnerable position to the threats resulting in huge financial and reputational loss. There are very few cyber insurance companies and efficient policies in India to safeguard against these risks. Therefore via this paper, we would like to bring forward the importance of Cyber Risk policy, issues faced by the insured and the insurer and some proposed solutions to them from an Indian perspective. To conduct this research we interviewed experienced IT Industry professionals and drew an understanding and proposed solutions based on our study and their inputs.