It is designed to help businesses hedge against potential cybercrimes such as ransomware, malware, etc... Read more
What is cybersecurity insurance?
1. It is designed to help businesses hedge against potential cybercrimes such as ransomware, malware, etc
2. Some policies also cover cyber stalking, e-mail spoofing, phishing, and cyber-extortion that may
a. Compromise a network
b. Expose sensitive data
Which are the aspects covered by this insurance?
1. The claim under the insurance includes
a. Cost of privacy investigations
b. Cost of lawsuits following an attack
2. They generally do not cover potential value erosion arising out of theft of intellectual property.
3. Individual and corporate policy plans should also cover the cost of hardware that was damaged during an attack.
Why is cybersecurity insurance getting prominence?
1. As per World Economic Forum, Cyberattacks top the list of human-caused risks globally.
2. Large-scale cyber attacks, like the recent SolarWinds and U.S. Colonial Pipeline attacks, have highlighted the growing threat of cyber-attacks.
3. Cybersecurity Ventures has predicted cybercrime may cause damages worth $6 trillion by the end of this year.
How is the cost of the policy determined?
Factors that determine the premium of the cybersecurity insurance policy include
1. Cyber preparedness of the company
2. The seriousness towards possible cyber attacks
3. The determination of a company to defend its data
4. Resources the company is willing to invest to defend data.
Where lies India with respect to cybersecurity insurance?
1. Only about 15-20% of Indian companies are actively considering securing their risks through insurance.
2. The percentage of companies already insured is much less.
3. Automation, Internet-of-Things and the current work-from-home situation is likely to give a boost to cyber insurance adoption in India
Source : The Hindu
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