Cyber Insurance Trends 2022

One out of four attacks have been faced by India in 2021. India was in the top three nations that have experienced a lot of ransomware attacks. Since cyber-attacks are inevitable, it has become necessary to get yourself covered under a cyber insurance policy. With the increase in the number of cyber-attacks, here are some trends predictions for the future.

Read more
Get ₹5 Cr Cover at just ₹4,60,000*
₹5 crore cover for only ₹2 lakh*

Expert Advice

Buy Right

Instant Policy

Quick & Hassle free

Dedicated Team

Speedy Claims

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Please share some basic details

Step 1/2
Are you buying the policy for?
Or Contact us on: 1800-309-0988
Get Updates on WhatsApp
By clicking on "" you agree to our Privacy Policy and Terms Of Use

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Just a step away from the quotes
Step 2/2
Are you buying Cyber Insurance policy for the first time?
Or Contact us on: 1800-572-3918
Get Updates on WhatsApp
By clicking on "" you agree to our Privacy Policy and Terms of Use

Increase In Demand For Cyber Insurance

With the increased number of cyber-attacks, many companies and firms have realized that they are not much safe from cyber-bullying. This has directly led them to cyber insurance. There was data released by The National Association of Insurance Commissioners that showed the increment in the number of purchases. The data showed that over 2.111 million policies were sold in 2016 which increased to 4.019 million by the year 2020.

Also, the estimated cost of a cyber breach in 2021 was around $4.23 million and these high costs are making these companies purchase a cyber insurance policy to protect them from cyber breaches. It has been predicted that there is going to be a surge in the number of purchases in 2022 and the insurance companies will have to make sure to provide better insurance policies witnessing the increment in the cyber attacks.

Updated Terms & Coverage

With the increase in the demand for cyber policy, the insurance companies will be updating the terms along with the inclusions and exclusions. The companies that do not have cyber insurance are recommended to read the terms of the policy and also look for the things you are getting coverage for and especially the excluded things from the coverage.

Since the insurance companies do not sell the cyber insurance policy to the companies that do not take the security measures to protect their company. However, to increase the awareness regarding cyber insurance purchase, the insurance companies have taken an initiative to establish Multi Factor Authentication in the companies opting for cyber insurance policies.

Apart from this, the insurance compaies are looking over the history of the companies with ransomware and cyber breaches to learn about the kind of cyber threat companies are facing. Also, learning to work with cyber security professionals to understand the cyber security measures better. This helps them in designing the cyber insurance policy.

However, the companies that do not fall under the minimum criteria to get the coverage or fail to provide the required documents. The insurance companies do not sell the cyber insurance plan to them. Otherwise, the companies can pay more amount but won’t get enough coverage.

Increases Premium Amount

The improper demand and supply of the cyber insurance policy have become one of the major reasons for the increased premium rates. The lack of awareness leads to a lower purchasing rate, the lower purchasing rate leads to increased cost, and the inflation that increased cost leads to an even higher premium amount every year.

Specifically, for the companies that are at high risk of cyber-attacks, it is highly unlikely for the insurers to offer them high coverage.

This leads the company to a point where they have to design an insurance plan with less coverage at a lesser price so that the companies can protect their online data according to their affordability.

Analyzing The Trends

As per the insurance experts, companies without cyber insurance protection plans are advised to purchase an insurance policy as soon as possible. In order to purchase the companies need to start analyzing the insurance plans that would fit their need.

When it comes down to selecting the kind of coverage they should obtain, it is recommended to they work closely with insurers to analyze the risk factors better.

Conclusion

It has become vital for all the companies to protect their company’s data from cyber attacks. We live in the digital era where data related to people is stored online. It is equally important for the insurance companies to offer cyber insurance plans that are affordable and provide sufficient coverage to the insured company’s data.

Written By: PolicyBazaar - Updated: 17 March 2022

Cyber insurance articles

Recent Articles
Popular Articles
Huge Market Potential for Cyber Insurance

19 Jul 2022

An online survey conducted by Policybazaar on National Insurance...
Read more
Ways to Maximize Cyber Flexibility to Support Hybrid Work

16 Jun 2022

If you are an employee then you must be aware of the hybrid...
Read more
What are the Key Metrics for Measuring Cybersecurity?

13 Jun 2022

With cyber-attacks constantly evolving, it only makes sense that...
Read more
Cyber Insurance War Exclusions

08 Jun 2022

Recently we have seen the Russia-Ukraine conflict and many...
Read more
Biggest Cyber Security Threats 2022

26 May 2022

Undoubtedly, there have been endless benefits to the internet...
Read more
Biggest Cyber Breaches in India
We live in the digital era. Now, almost everything is possible online as every other organization is going digital...
Read more
Impact of Cyber-Attacks On Insurance Industry
The cyber risks have increased after the outbreak of Covid-19. One of the main reasons behind the increment in...
Read more
8 Ways to Enhance Retail Store Security
Every shop owner must put in extra efforts to make their retail store as safe as possible. To create a secure...
Read more
What are the Key Metrics for Measuring Cybersecurity?
With cyber-attacks constantly evolving, it only makes sense that cybersecurity measures are constantly assessed...
Read more
Cyber Security for Retail: Threats & How To Avoid Them?
With the increased usage of the Internet, the number of cyberattacks has increased as well. Since retail shops...
Read more