Bank cyber insurance claims in India are estimated to have crossed ₹150 crore so far in FY27, insurance industry experts said on 1 November 2026, with most of the rise coming in the first half of the year. The surge follows a run of incidents at lenders, the latest being a possible customer data leak at AU Small Finance Bank disclosed on 30 October 2026.
Bank cyber insurance claims: the numbers
Ransomware attacks and data breaches are the main drivers, according to brokers and insurers, even as lenders buy much larger covers.
- Claims from banks: estimated above ₹150 crore so far in FY27, against a typical ₹25-75 crore a year five years ago
- Claims ratio in banking: up 50-60% over the past year
- Total cyber insurance premiums in India: an estimated ₹900-1,100 crore in FY26
- Sum insured bought by banks and financial institutions: $50-100 million in FY26, up from $10-25 million in FY21
Shikha Hassani, Senior Vice-President at Unilight Insurance Brokers, put BFSI claims at ₹150-175 crore, nearly 50% higher than last year. She added that stricter reporting rules and better awareness are also bringing previously under-reported incidents into the claims pipeline.
What happened at AU Small Finance Bank?
AU Small Finance Bank said on 30 October that there was a possibility of data leakage on its Salesforce platform, a software-as-a-service (SaaS) system managed and hosted by Salesforce, which holds limited data of its vehicle-loan (“wheels”) customers. The bank said the matter is under investigation, its own systems remain unaffected and all services are running normally.
The hacking group ScarlettGroup has claimed the breach and threatened to leak customer and internal data, according to cyber-intelligence trackers. The bank has not disclosed what data was exposed or how many customers are affected.
AU Small Finance Bank, which is preparing its transition to a universal bank, holds a ₹100 crore cyber insurance cover from The New India Assurance Company, people familiar with the matter told The Economic Times. The lender had not yet intimated the insurer; the adequacy of the cover will depend on forensic findings.
Why insurers are worried about AI-assisted attacks
State Bank of India, Bank of Baroda and Central Bank of India have also reported cyber incidents this year. One insurance executive said hackers are increasingly using artificial intelligence to breach even sophisticated systems, so the depth of penetration, and the losses, could be larger than first thought. Smaller lenders are already feeling this: small NBFCs lost an estimated ₹300 crore to AI-powered cyberattacks in two months.
Why premiums are still soft
Despite the losses, cyber insurance premiums have stayed at about 0.75-1.5% of the sum assured, as insurers and reinsurers, including new foreign entrants, have added capacity. A cover of about ₹800 crore can draw premiums of more than ₹2-2.5 crore, Hassani said, but insurers could raise rates, cut capacity or exit some segments if claims keep climbing.
Regulation is adding pressure too. The RBI is tightening cyber checks on banks, including their fintech and NBFC API links, and the upcoming rollout of the Digital Personal Data Protection (DPDP) Act is pushing lenders to review data-related liabilities. Large banks are also building in-house defences, such as SBI’s CyRIS cybersecurity centre of excellence.
Key takeaways
- Cyber insurance claims from Indian banks are estimated above ₹150 crore so far in FY27, with the banking claims ratio up 50-60% in a year.
- AU Small Finance Bank is probing a possible leak of limited vehicle-loan customer data on a Salesforce-hosted platform and holds a ₹100 crore cover from New India Assurance.
- Premiums remain soft at 0.75-1.5% of sum assured, but insurers warn rates could harden if claims keep rising.
FAQ
How much have Indian banks claimed under cyber insurance in FY27?
Industry experts estimate claims from banks have crossed ₹150 crore so far in FY27, compared with ₹25-75 crore a year five years ago.
Were AU Small Finance Bank’s core systems affected?
No. The bank said the possible leak relates to limited vehicle-loan customer data on a Salesforce-hosted SaaS platform and that its own systems and services are operating normally.
Featured image: The New India Assurance Building in Mumbai. Photo: Colin Rose / Wikimedia Commons (CC BY-SA 2.0).
