Today, various organizations rely on Internet-based technology to reach out to their prospective customers and pursue their digital marketing goals.
All digital tools expose these organizations to the risk of cyber threats. A cyber-attack can cause moderate to extreme loss to an individual as well as small and large entities.
All the business organizations or companies that are directly or indirectly involved in online payment transactions, customer data management, information storage, use of payment gateways, or cloud services should definitely consider buying cyber insurance in India. Amid the proliferation of smart devices connecting to vast business networks, the risk for malicious attempts on an organization's assets is even higher.
To effectively combat such cyber threats, organizations now need to include cyber insurance policy
as a part of their risk mitigation plan. Cyber insurance in India is a measure of countering risks to neutralize cyber risks.
As per the Data Security Council of India (DSCI), in 2018 there has been a 40 percent rise in the Cyber insurance purchase in India. Cyber threats are on a constant rise and the associated risks are provoking the organizations to get cyber insurance cover to offset financial liabilities that may arise due to any breach.
As per the report, the cyber insurance market is expected to grow globally at a CAGR of 27 percent from INR 29,400 in 2017 to INR 1.59 lakh Crore in 2024.
As mentioned earlier, cybercrimes are rapidly increasing. Data/security breaches continue to affect millions and the reports of breaches are also dramatically rising. Unauthorized access is a common example of a security breach. This is where the role of cybercrime insurance comes into play. It offers compensation for expenses, fees, and legal costs arising due to cyber breaches. It also includes the loss or theft of the client/employee information due to the hacking of the organization’s data.
Data security is one of the primary responsibilities of companies as they have access to their customers’/ users’ private & confidential information. Having cyber insurance in India is a must for such companies.
The main features and benefits of a cyber-insurance policy are enumerated below:
Mentioned below are some of the tips to enhance cyber security and effectively prevent cyber risks: