Information and Cyber Insecurity is the biggest risk in 2017 for many sectors, according to the Federation of Indian Chambers of Commerce & Industry (FICCI) – Pinkerton India Risk Survey (IRS) 2017 released on 23rd June 2017. All Industries Together Government need to have a collaborative outlook to address the emerging threat of information and cyber insecurity. The cyber-attack is not focused towards any particular industry but it is widely spread across industries especially those organizations which are online and connected through a digital platform. The Insurance Industry can address the need for protecting cyber risks and formulate the tailor-made cyber insurance plans for different segments of industries and Cyber risks according to the sector specification
Cyber Insurance/Cyber Liability Insurance features a brief snapshot
Cyber-liability insurance has its own Challenges. The cyber Insurance market is not effectively explored compared to traditional insurance products Cyber-liability insurance is slated to cover the claims which were not covered by traditional insurances. Cyber Insurance covers the legal and other expenses in case of data breach and damages caused by the cyber risks such as cost of restoring the data, loss because of the business interruption caused Cyber risks and Cyber attacks. Cyber Liability Insurance coverage can be formulated to meet the cybersecurity risks and protecting the needs of various businesses of different sizes and providing Insurance Solutions on comprehensive data security and Other Related Cyber Risks. Bajaj Allianz the private general insurer has come with first of its kind of Cyber Insurance recently.
Pre-stage Underwriting requisites of issuing of Cyber Insurance/Cyber Liability Insurance
Chief Information Officers and Information Technology managers can take up the responsibility of drawing effective cybersecurity policies in an organization which will help the organization in mitigating the Cyber Risks and Cyber Attacks. Effective draft to be formulated for appropriate cybersecurity policies, seamless technology, data encryption, and internal control measures, etc. Analyzing the risks faced by the organization and sustaining the challenges faced in the business environment the corrective steps to be taken for proper implementation of cybersecurity in an organization. This will form an internal security check from the end of the organization and cyber liability insurance will be easily underwritten with fewer hurdles.
Present The Situation of Internet reach and corresponding chances of cyber risks
World Overview – Digital Snapshot
With the rise in every digital transaction and more companies adopting online platforms, every internet minute sees a lot of internet traffic on increasing frequencies, below a trend of Which depicts every internet minute what happens in the online platform and it is set to rise in the near future.
Global Digital snapshot January 2017 – Key statistical indicators for the world’s Internet, Mobile, and Media Users
India – Cyber Risks
Initiatives and programs such as Digital India in place, more Indians are surfing the Internet and hence, it is crucial to put the critical infrastructure in place to predict and prevent cyber crimes. In India, at least one cyber-attack was reported every 10 minutes in the first six months of 2017. In 2017, as per the Indian Computer Emergency Response Team (CERT-In), a total of 27,482 cases of cybercrimes have been reported across the world. These include phishing, site intrusion, virus, and ransomware.
A total of 1.71 lakh cyber crimes were reported in India in the past three-and-a-half years. The number of crimes that have been reported so far (27,482) indicates that the total number is likely to cross 50,000 by December. In the past three years, Ransomware attacks have increased. In this, the attacker threatens to publish the data of a person online until a certain amount of ransom is paid. The attackers demand ransom in bitcoins (a digital currency), a secure way for accepting this type of payment for attackers.
The cybersecurity incidents have been growing steadily in India. The vast majority of organizations are looking at cybersecurity as a compliance task. Few regulatory authorities including the telecom regulator TRAI and the judiciary have stepped in. TRAI had raised the issue of threats posed by mobile applications that collect sensitive user data. On the other hand, India's top court is looking at whether privacy should be a fundamental right—both offline and online–which will affect how companies handle user data in India. In the wake of recent cyber-attacks and also implement an appropriate mechanism to mitigate cyber risks The IRDAI has asked insurers on the present status and the future plan of action on cybersecurity framework of insurers. IRDAI should also insist on research and exploring new product development of cyber risks related insurance products to combat with growing cyber risks.
References are drawn from
- Federation of Indian Chambers of Commerce & Industry(FICCI) – Pinkerton India Risk Survey (IRS) 2017
- World Economic Forum @lorislewis @officiallychad
- Global Digital snapshot January 2017 – Key statistical indicators for the world’s Internet, Mobile, and Media Users
Jaswanth Singh G
Insurance Domain Consultant (InsureTech) and Faculty for Insurance, Financial Services & Pension Studies
Article Published in April 2018 Edition of Pravartak -National Insurance Academy