Cyber Insurance for Banking Finance and Insurance Industry
Cyber insurance for the banking finance & insurance industry offers financial protection against potential financial threats and cybercrimes. Moreover, this insurance policy protects the banking finance & insurance industry from third-party liabilities resulting from cyber-attacks leading to heavy reputational loss.
Get ₹5 crore Cyber Risk Insurance for Business @ ₹3 Lakhs*
Are you buying the policy for?
- Home
- Commercial Insurance
- Cyber Insurance
- Cyber Insurance for Banking Finance and Insurance Industry
Who Can Buy Cyber Insurance for Banking Finance and Insurance?
The industries that fall under banking finance & cyber insurance are as follow-
- Banks
- Depository Services, Private Equity, and Venture Capitalists
- Foreign Exchanges
- Insurance Companies or Brokers
- Investment, Fund, and Asset Management
- Mutual funds and Unit Trust Management
- Non-banking Financial Companies (NBFCs)
- Professional Advisory
- Stock Market Exchange & Brokers
- Tax and Auditing Consultants
Cyber Insurance for Banking Finance and Insurance: Inclusions
Cyber insurance for banking finance and insurance covers the following perils-
- Loss due to identity theft
- Loss due to unauthorized transactions and reputational injury
- Loss due to cyber extortion and cyberbullying
- Coverage for legal expenses, forensic expenses, and data restoration costs
- Loss due to malware intrusion
- Any consequential loss
Cyber Insurance for Banking Finance and Insurance: Exclusions
Cyber insurance for banking finance and insurance does not cover the following perils-
- Any physical injury, disease, sickness, temporary/permanent disability, or death
- Any damage or loss due to a lack of precautionary measures by the insured party to safeguard sensitive data
- Any consequential loss or damage suffered by a third party during the cyber attack
- Any perils that are uninsurable under the matter of law
- Any damage or loss to the insured network system due to participation, supervision, or dishonest/criminal/malicious activity
- Any claim raised due to the destruction of any tangible property
- If there is theft, burglary, loss in value, disappearance, or inaccessibility of any cryptocurrency
- No coverage for any legal proceedings that have started before the commencement of the policy term
- Loss due to dealing in securities, commodities, derivatives, federal funds, sovereign funds, currencies, foreign exchange
- Mysterious disappearance or unexplained loss
- Any loss due to several business activities, including e-trading, blogging, etc.
- Any specific perils mentioned in the cyber insurance policy
FAQs
-
Q1. Does cyber insurance cover the third-party liability cost?
Ans: Yes, cyber insurance covers the third-party liability costs arising out of a cyber-event, such as defense costs, investigation costs, legal fees, civil damages, and compensation to the affected parties. -
Q2. Are banks and other financial institutions required to have cyber insurance policies?
Ans: As these institutions include financial operations and reputational risks, which further can lead to data loss, fraud, or disorder in services, so cyber insurance will be an effective way to deal with such unforeseen risks. -
Q3. What are the common types of cybercrime in financial institutions and banks?
Ans:Some common types of cybercrime in financial institutions are-- Ransomware attacks
- Identity fraud
- Hijacked emails and internet frauds
Written By: PolicyBazaar - Updated: 28 February 2023
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Cyber insurance news
Latest News
14 Feb 2023
On February 5, Reddit confirmed hackers tried to access their internal information and source code through a highly targeted phishing attack.
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Christopher Slowe, CTO of Reddit, revealed the company was able to recognize sophisticated attacks targeting Reddit employees. He said that an unidentified attacker message sent 'plausible-sounding prompts’ that redirected the company's employees to an internet portal that impersonated to be Reddit. The hackers tried to steal employees' credentials & two-factor authentication keys. The hackers accessed some internal documents, source codes, dashboards, and business systems. However, Reddit recognized the security breach, cut off the access, and started an internal investigation. They also said there is no evidence of personal or non-public data breaches, publication, or online distribution. Furthermore, they are investigating & monitoring the situation to enhance their security system.
03 Feb 2023
Finance minister Nirmala Sitharaman presented the Union Budget FY 2023 on February 1, 2023. The Finance Minister announced the establishment of 3 artificial intelligence centres for excellence under
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the initiative of “Make AI in India”. Set up of these AI centres will take place in top educational institutes. “Make AI work in India” is an initiative and a focus area of the Modi Government. Nirmala Sitharaman also said that the government will implement the national data governance policy.
09 Jan 2023
Cyber fraudsters are targeting customers under the disguise of not a bank official but an insurance company official. In one such event, a 67 year old citizen from Thottakattukara, Kochi, lost Rs 1 lakh.
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He was approached by a woman name Radhika Jain who claimed to be from an insurance company. She promised the victim to make the financial settlement for the raised claim if he pays Rs 1 lakh to renew the policy. When the victim filed the complaint, Rural Cyber Police, Ernakulam, launched the investigation. The incident took place on October 29 and the fraudster claimed to be an ICICI Prudential Insurance official. The fraudster fooled the elderly person by telling them that his insurance policy has expired and the settlement cannot be made disbursement of the insurance amount. As per the Police officer, “The fraudster suggested the victim to pay Rs 1 Lakh to renew the insurance policy. If the policyholder pays the amount then he will be considered as Senior citizen and the disbursement will be done. In order to make it look genuine, the caller sent ICICI Prudential life insurance letterhead through Whatsapp.” “The fraudster promised the complainant that within 45 days the settlement of Rs 2.45 lakh will be done. The victim transferred the amount to the fraudster’s Canara bank account and once the payment was made the fraudster sent some fake documents. However, the promised settlement of Rs 2.45 lakh was not made even after 45 days.” A police officer said. After cross checking the details of transaction, the police found out that the accused was from Aligarh. Police is also probing as to how the accused got the information related to the insurance policy of the victim. 
09 Dec 2022
Out of 5 million people globally, 6 lakhs Indians have had their sensitive data stolen and sold on the bot market making India, the worst affected country.
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The average cost of the digital identity of one person was Rs.490, revealed NordVPN, the world's largest VPN service provider. The stolen data include user logins, screenshots, digital fingerprints, cookies, and other sensitive information. All these data are sold in packets in the bot markets, which refer to places where hackers sell stolen data from victims' devices with bot malware. The study majorly looked into three-bot markets the Genesis market, 2Easy and the Russian Market. Out of 26.6 million stolen logins found on the bot markets, 7,20,000 were Google logins, 6,47,000 were Facebook and 6,54,000 were Microsoft logins. Moreover, 667 million cookies, 5,38,000 auto-fill forms, 81,000 digital fingerprints, multiple device screenshots, and webcam snapshots were also found by the researchers. The bot markets are distinct from other dark markets as bot markets are able to get huge amounts of information related to one person in one place. The hackers also guarantee that once the bot is sold, the data of the victim will be updated till their device is affected by that bot, stated Marijus Briedis, chief technology officer at NordVPN. Security researchers also said that not all bots come with a good purpose, many can be malicious as well. These bots operate in multiple fields like customer service, SEO and entertainment and are becoming increasingly common recently. Vidar, RedLine, Taurus, AZORult and Racoon are some of the most popular malware used to collect and steal information out of which RedLine is the most common, stated the report.
06 Dec 2022
All India Institute of Medical Sciences, New Delhi, India reported a cyberattack on November 23, 2022. Later, the statement released by AIIMS said that e-hospital system
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has gone down and it has affected the digital hospital services, e-billing, smart lab, appointment system and report generation. AIIMS currently manages around 2,500 beds. It is said that the data of around 2 to 3 Crore patients might have been compromised. After the incident, AIIMS shifted to manual operations to cater the patients. Also, All India Institute of Medical Sciences sought National Informatics Centre (NIC) and I-CERT to restore the digital services. The incident has been reported to Delhi Police whereas CBI and NIA have joined the investigation. AIIMS issued a new Standard operation procedure where the admission, discharge and transfer of patients will be done manually. As per a source told Press Trust of India, “Hackers have demanded a ransom of Rs 200 Crore in crypto currency on November 28, 2022”. Later, Intelligence Fusion & Strategic Operations unit have registered the case under cyber terrorism and extortion on November 25. Meanwhile, National Information Centre e-hospital database and application servers restored the data for e-hospital. Also, the team of NIC is cleaning and scanning infections from other e-hospital servers that are located at AIIMS hospital. These servers are required to deliver the service of the hospital. Also, four physical servers have been arranged to restore the e-hospital services and have been scanned and prepared for the applications and database. As per the source, “Sanitisation of AIIMS network is in progress. Antivirus has been installed on 1200 out of 5000 computers and 20 out of 50 servers have been scanned. This activity is going on 24*7”. Cyber insurance articles
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