Cyber insurance demand rise, post-demonetisation

cyber security

Amid the menace of cyber threats and the rising use of digital payments post demonetisation,the demand of cyber insurance and cyber liability insurance has registered a visible growth.This is despite the fact that the industry base for cyber insurance is currently as low as Rs 60 crore.

Reportedly,there are various cyber insurance covers available in the country, but it is the cyber liability insurance which is in maximum demand for the banks.
Non-life insurers that provide cyber insurance cover include New India, National, ICICI Lombard, Tata AIG, HDFC Ergo and Bajaj Allianz. Country’s largest lender State Bank of India (SBI), which fell victim to cyber frauds some time back, is now considering insurance to protect its 30 crore customers,reported the Money control.

Talking about the rise in cuber insurance’s demand,State Bank of India’s managing director Rajnish Kumar said,”We have always seen maximum security in all our IT systems. We are now considering to avail cyber insurance covers for our customers.We are actively examining the issue. The only thing that we have to ensure is that insurance costs fit into our scheme.”

Last year,3.2 million debit card users were affected by India’s greatest banking security breach.

Electronic data breaches are costing India dearly with losses incurred per capita owing to compromised record rising steadily over the past few years, says a new research.

Conducted jointly by IBM and Ponemon Institute — the research centre dedicated to privacy, data protection and information security policy — the study assumes significance in light of the recent banking data breach that compromised safety of more than 30 lakh debit cards across the country.

According to the study findings, the per capita cost incurred due to compromised record has inflated by 75 per cent in the past five years. The report said the cost of data breach went up from Rs. 2,106 in 2012 to Rs. 3,704 this year.

According to a National Crime Records Bureau (NCRB) report, cyber crimes in India grew 20 per cent in 2015 over 2014.

Data breach is emerging as a major concern for India. The case in point is the recent ‘Scorpene leaks’ that resulted in the publication of details of the submarine in an Australian newspaper. Such data breaches carry a price for national security.

India had the highest percentage of data leaks due to a system glitch, according Ponemon’s 2016 global analysis. Also, even though India’s per capita cost of a data breach was the lowest, it had the highest number of records compromised.

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