Phone : +91 95 8290 7788 | Email : sales@itmonteur.net

Register & Request Quote | Submit Support Ticket

Home » Cyber Security News » Companies rush for cyber insurance on data laws, digitization

Companies rush for cyber insurance on data laws, digitization

Companies rush for cyber insurance on data laws, digitization

Insurance is generally difficult to sell, but for a product like cyber insurance, the coin has flipped. The market is at a point where demand is growing fast and insurance companies might not be prepared to meet it yet, say industry insiders.

Multiple insurance brokers ET spoke to said that over the last couple of years, the demand for cyber insurance is steadily climbing and is expected to climb further now that India has formulated its own data protection law. But cases of high claims and the complexity of the product make it such that insurance companies are wary of selling one. And also, for startups to qualify for a good cover is very difficult.

 

Rising Demand

“Demand for cyber insurance has been increasing steadily… the market is currently valued at $50-60 million and has been growing at a compound annual growth rate of 27-30% over the past three years,” said Dhirendra Mahayavanshi, CEO, insurance broking startup Turtlemint.

He further added that over the next few years, demand for cyber insurance is expected to grow by around 30% in India.

Recently licensed insurance broking startup Bimakavach is betting big on this space.

Tejas Jain, founder of Bimakavach, told ET that he is building an entire suite of insurance products that new-age small- and medium-sized businesses will need to keep their operations safe and cyber insurance is a key product in that stack.

“Companies like fintechs, software service providers hold on to a lot of data, but historically hardly took the right insurance covers, but now even their investors are pushing them to get covered,” Jain added.

Products like cyber insurance, fraud cover, including both insider and third party fraud, directors and officers liability all these are being taken by new generation companies. “A lot of conversations are happening around cyber insurance covers in the wake of India enacting the data protection law too,” Jain added.

Factors driving demand

Multiple reasons are driving demand among businesses these days. More and more companies are digitising their operations, in turn gathering a lot of data on their customers. While it helps them scale up their business, it also makes them vulnerable to cyberattacks.

“Typically, for small and medium businesses, the IT systems are not so robust, hence, insurers also stay away from offering any cover to such entities,” said Evaa Saiwal, business head, liability, cyber and financial risk at Policybazaar for Business.

Saiwal added that information security experts play a vital role in advising companies to strengthen their systems so that they become eligible for these products. Overall issues like rising cases of fraud attacks, ransomware attacks and the rising cost of dealing with a cyberattack is causing companies to seek cover. For instance, under the DPDP Act, fines can go up to as much as Rs 250 crore, enough to shut down a medium sized business.

“There are a lot of discussions happening among companies and insurers after DPDP Act was enacted, but transactions are yet to pick up big time, the industry is awaiting to understand the full impact of the law,” Saiwal said.

Mahayavanshi of Turtlemint said that 70% of the cyber insurance products sold in India were after Europe enacted GDPR in 2018. The DPDP Act is expected to create a similar demand, he added.

Expensive Affair

While one section of companies are seeking protection, another is increasing their cover. Industry insiders pointed out that they often come across cases where the company wants cover of as high as $10 million. Around $5 million to $6 million, they say, have become common these days.

As per industry estimates, premium could hover around 0.6% to 1.2% of the protection amount, depending on the kind of company being covered. Data heavy segments like banking, finserv and Saas often attract higher cost.

“The rates offered to companies are not very conducive, they need to budget for this expense,” said Saiwal of Policybazaar.

Also insurers and reinsurers have very strict checks before they can insure a company. Saiwal said that many companies undertake complete overhaul of their IT systems to become eligible for these covers. Overall it is an expensive and time taking process.

But with GDPR already in place, the reinsurance industry has already built the assessment models, now it is the turn of the Indian cyber insurance market to mature and build products with the optimum coverage.

Managed Firewall Support Services

Firewall Support Service,
Firewall support number :
+91 96540 16484

Sales :+91 958 290 7788
Support : +91 94 8585 7788

Register & Request Quote
Submit Support Ticket

Information Security - InfoSec - Cyber Security - Firewall Providers Company in India

 

 

 

 

 

 

 

 

 

 

 

 

What is Firewall? A Firewall is a network security device that monitors and filters incoming and outgoing network traffic based on an organization's previously established security policies. At its most basic, a firewall is essentially the barrier that sits between a private internal network and the public Internet.

 

Secure your network at the gateway against threats such as intrusions, Viruses, Spyware, Worms, Trojans, Adware, Keyloggers, Malicious Mobile Code (MMC), and other dangerous applications for total protection in a convenient, affordable subscription-based service. Modern threats like web-based malware attacks, targeted attacks, application-layer attacks, and more have had a significantly negative effect on the threat landscape. In fact, more than 80% of all new malware and intrusion attempts are exploiting weaknesses in applications, as opposed to weaknesses in networking components and services. Stateful firewalls with simple packet filtering capabilities were efficient blocking unwanted applications as most applications met the port-protocol expectations. Administrators could promptly prevent an unsafe application from being accessed by users by blocking the associated ports and protocols.

 

Firewall Firm is an IT Monteur Firewall Company provides Managed Firewall Support, Firewall providers , Firewall Security Service Provider, Network Security Services, Firewall Solutions India , New Delhi - India's capital territory , Mumbai - Bombay , Kolkata - Calcutta , Chennai - Madras , Bangaluru - Bangalore , Bhubaneswar, Ahmedabad, Hyderabad, Pune, Surat, Jaipur, Firewall Service Providers in India

Sales Number : +91 95 8290 7788 | Support Number : +91 94 8585 7788
Sales Email : sales@itmonteur.net | Support Email : support@itmonteur.net

Register & Request Quote | Submit Support Ticket