What is cyber security insurance and why is it gaining in popularity

Feb 22, 2019 | 4 months ago | Read Time: 6 minutes | By iKnowledge Team

Cyber security insurance is insurance against cyber-attacks – fraudulent attacks by people with malicious intent. India faces several such breaches each year, putting privacy and information at a huge risk.

Imagine waking up to news that your bank has been defrauded of several crores of money overnight by hackers. The fear resonating because of that thought is what customers of a bank based in Western Indian faced in August of 2018[1]. Cyber criminals and hackers stole Rs. 94.40 crores from the bank’s accounts. This fraud happened because a proxy switch was created that approved debit and credit card transactions automatically. The bank officials confirmed that this hack occurred at the bank level and customer accounts were not affected.

Unfortunately, this scene is often repeated. A reputed internet security firm, in its Internet Security Threat Report[2] said that India is ranked second in the world when it comes to being a victim of cyber-crime behind United States.

Indian cyber crime chart

Image source: Times of India

cyber victims chart

Image source: Times of India

 

It is not just India which is at the receiving end of cyber threats. The number, intensity, and frequency of cyber threats has increased multifold throughout the world. The frequently circulating link about the famous Mr. Bean actor Rowan Atkinson dying, is in fact a ransomware that embeds itself in your device if you click it. There are several such links that keep opening to malicious pages and embed a virus in the device it is opened on. Such threats are becoming commonplace. Embedded videos and links, breaks in a firewall, breaches of security and antivirus software’s happen regularly.

web threats & malware

Image source: Symantec Internet Security Threat Report 2018

 

With the surging number of cyber attacks, the number of firms looking to take protection against these attacks has gone up. Consequently, cyber security insurance is gaining popularity in India.

 

What is cyber security insurance?

Cyber insurance has been around for 10 years, but is gaining popularity in India since the last 3 years. Cyber security or Cyber insurance covers the risk against cyber attacks, malware, and loss of data as a result of such breach.

cyber insurance for dummies

Source: SME Futures

 

Cyber insurance is a relatively new field of insurance but is seeing a surge in demand from businesses, especially IT companies and banks, who need to maintain the integrity of their data. The cyber security insurance is a fragmented industry at the moment, but the growing demand for cyber insurance policy will lead to premium rationalization and widespread adoption. At the moment educational, consulting, accounting companies sometimes have to pay Rs. 5-10 lakhs for a coverage of Rs. 5 crore. For companies requiring heavier data security such as financial companies, banks, information technology companies etc., the premium can go up to Rs. 25 lakhs[3].

growing business

Image source: Economic Times

 

Why is cyber security insurance growing in popularity?

The number of takers for cyber security insurance policies is seeing a rise as data becomes more critical in the age of computing. As privacy concerns among consumers continue to mount, it becomes more essential for companies to ensure that the data is well protected.

cyber security insurance graph

Image source: factordaily.com

 

Most Indian companies have some form of online presence. There is an increased interest in ensuring this presence is maintained and the data is secured. By opting for cyber security insurance, at least some of the losses under these attacks can be covered.

 

 

While you secure your business against the threat of online attacks, don’t forget to protect your family against financial problems by buying a life insurance policy. Invest in a term insurance for example, Aegon Life’s iTerm plus insurance plan which provides a large sum assured for an affordable premium. With term riders such as accidental death, permanent disability and critical illness coverage, this plan will ensure that your family will get a sizeable compensation in case of any unforeseen circumstances. The iTerm Plus insurance plan has an inbuilt terminal illness rider which pays 25% of the sum assured on diagnosis of terminal illness. The plan also provides flexible options for payment of death benefit which can be chosen to suit the family’s needs. It is important to secure your business, but take some time out to secure your family’s financial future as well.

 

If you’re a business owner, have you considered cyber security insurance yet?

 

Citations

[1] https://ww

: Cyber security insurance is insurance against cyber-attacks – fraudulent attacks by people with malicious intent. India faces several such breaches each year, putting privacy and information at a huge risk.

Imagine waking up to news that your bank has been defrauded of several crores of money overnight by hackers. The fear resonating because of that thought is what customers of a bank based in Western Indian faced in August of 2018[1]. Cyber criminals and hackers stole Rs. 94.40 crores from the bank’s accounts. This fraud happened because a proxy switch was created that approved debit and credit card transactions automatically. The bank officials confirmed that this hack occurred at the bank level and customer accounts were not affected.

 

Unfortunately, this scene is often repeated. A reputed internet security firm, in its Internet Security Threat Report[2] said that India is ranked second in the world when it comes to being a victim of cyber-crime behind United States.

 

 

Image source: Times of India

 

Image source: Times of India

 

It is not just India which is at the receiving end of cyber threats. The number, intensity, and frequency of cyber threats has increased multifold throughout the world. The frequently circulating link about the famous Mr. Bean actor Rowan Atkinson dying, is in fact a ransomware that embeds itself in your device if you click it. There are several such links that keep opening to malicious pages and embed a virus in the device it is opened on. Such threats are becoming commonplace. Embedded videos and links, breaks in a firewall, breaches of security and antivirus software’s happen regularly.

 

 

 

Image source: Symantec Internet Security Threat Report 2018

 

With the surging number of cyber attacks, the number of firms looking to take protection against these attacks has gone up. Consequently, cyber security insurance is gaining popularity in India.

 

What is cyber security insurance?

Cyber insurance has been around for 10 years, but is gaining popularity in India since the last 3 years. Cyber security or Cyber insurance covers the risk against cyber attacks, malware, and loss of data as a result of such breach.

 

Source: SME Futures

 

Cyber insurance is a relatively new field of insurance but is seeing a surge in demand from businesses, especially IT companies and banks, who need to maintain the integrity of their data. The cyber security insurance is a fragmented industry at the moment, but the growing demand for cyber insurance policy will lead to premium rationalization and widespread adoption. At the moment educational, consulting, accounting companies sometimes have to pay Rs. 5-10 lakhs for a coverage of Rs. 5 crore. For companies requiring heavier data security such as financial companies, banks, information technology companies etc., the premium can go up to Rs. 25 lakhs[3].

 

Image source: Economic Times

 

Why is cyber security insurance growing in popularity?

The number of takers for cyber security insurance policies is seeing a rise as data becomes more critical in the age of computing. As privacy concerns among consumers continue to mount, it becomes more essential for companies to ensure that the data is well protected.

 

Image source: factordaily.com

 

Most Indian companies have some form of online presence. There is an increased interest in ensuring this presence is maintained and the data is secured. By opting for cyber security insurance, at least some of the losses under these attacks can be covered.

 

 

While you secure your business against the threat of online attacks, don’t forget to protect your family against financial problems by buying a life insurance policy. Invest in a term insurance for example, Aegon Life’s iTerm plus insurance plan which provides a large sum assured for an affordable premium. With term riders such as accidental death, permanent disability and critical illness coverage, this plan will ensure that your family will get a sizeable compensation in case of any unforeseen circumstances. The iTerm Plus insurance plan has an inbuilt terminal illness rider which pays 25% of the sum assured on diagnosis of terminal illness. The plan also provides flexible options for payment of death benefit which can be chosen to suit the family’s needs. It is important to secure your business, but take some time out to secure your family’s financial future as well.

 

If you’re a business owner, have you considered cyber security insurance yet?

 

Citations

[1] https://www.businesstoday.in/sectors/banks/cosmos-bank-atm-fraud-npci-says-its-systems-fully-secure/story/281344.html

[2] https://resource.elq.symantec.com/e/f2

[3] https://securenow.in/blog/indian-companies-taking-cyber-insurance-cover

w.businesstoday.in/sectors/banks/cosmos-bank-atm-fraud-npci-says-its-systems-fully-secure/story/281344.html

[2] https://resource.elq.symantec.com/e/f2

[3] https://securenow.in/blog/indian-companies-taking-cyber-insurance-cover

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