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 cyber attacks is that the companies had to send their employees to work from homeand it made their online data vulnerable and easier to hack. This led to cyber risks in the insurance industry as well.

Read more
Get ₹5 Cr Cover starting at ₹4,60,000*
marine

Get right expert advice

Hassle free policy

Speedy Claims

Get Free Access to Report: Cyber Breaches in Industry

Fast-track your search with instant quotes from top insurers

Don't Gamble with Cybersecurity - Insure Your Business Now!

Step 1/2

Don't Gamble with Cybersecurity - Insure Your Business Now!

secure-icon We don't spam
Are you buying the policy for?
Get Updates on WhatsApp
Check Plans for Free

Don't Gamble with Cybersecurity - Insure Your Business Now!

Step 2/2
Fast-track your search with instant quotes from top insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Get Free Access to Report: Cyber Breaches in Industry

Cyber Risks During Pandemic

Usage of digital means has increased during the pandemic in order to maintain the social distance from each other. Almost every organization in the world opted the remote work and started doing business digitally. The remote working culture made the digital medium more prone to cyber-attacks. During the pandemic, the insurance companies providing cyber insurance policies have also come into the radar of cyberbullies.

Cyber attacks are one of the top global digital risks for the financial sector. The number of incidents have increased along with the impact on financial entities. As per a recent study on the cyber risk during the pandemic in the financial sector reveals the number of covid-19 related cyber-attacks has increased in the health sector. Not just this, insurance companies, credit unions, and payment institutions are some of the most affected sectors.

Insurance Companies In The Radar of Cyber Bullies

Insurance companies have always been on the radar of the cyberbullies. It is because of the amount of data they have of their customers. They have all the details about their customer’s health issues, their income, etc. which if get into the hands of these hackers then they can use all those information to blackmail them.

This makes the insurance companies more prone to cyber-attacks than any other company. Since insurance companies have started promoting online purchases and renewals to make the customer's experience smoother hence become one of the favourite targets of hackers.

Consequences Suffered by Insurers

Interruption in the business of the insurance companies is one of the biggest consequences suffered by them along with the cost of materials used for undertaking, for the third parties and policyholders. The data hacked by cyberbullies can be used in different criminal activities such as identity theft to blackmail the company for financial gains.

Apart from the financial loss, the insurance companies will have to face reputational damage that can last for a long time. Also, these attacks can result in operational issues also. Since the cyber attacks can cause interruption in the business then it will directly impact their customers.

Loss of Customers

Insurance companies hold the personal data of their customers and once that data is on loose, the companies will have to face legal consequences as it makes their customers eligible to file a case against them for not protecting their personal data.

Since insurance companies hold on to confidential data of their customers and if they get hacked, the customers lose their trust in the insurance company with their data. This results in the loss of customers in the future due to reputational damage and not being able to protect their company from cyber-attacks.

Advantage & Disadvantage of Cyber Insurance

In this digital era, having cyber insurance has become a necessity. The cyber insurance policy can provide coverage for all the data lost due to cyber-attack and this is one of the advantages but the hackers cannot be trusted with the data as they can copy all that data that they can use later to blackmail the company. Also, once the reputation of the insurance company damages, it takes years to get back that goodwill and reputation in the mind of the “would-be customers”.

Everything has its advantages and disadvantages but keeping yourself ready and secure is in your hands. Companies in the service sectors have to keep themselves ready for an unexpected data breach as they are not only responsible for their company’s data but the data of their customers.

Conclusion

Cyber attacks are inevitable. Since it is impossible to stop these cyberattacks, it is better to keep yourself ready and protected by installing anti-malware so that you can protect your company’s data. Talking about the insurance companies, well they have to not only secure the data from within the company and value chain but also be prepared from any unforeseen threats.

Written By: PolicyBazaar - Updated: 27 September 2023
Cyber Insurance Companies

Now help your friend get Business Insurance

Your referral is greatly appreciated!

Our team will reach out to your friend soon to help with their business insurance requirements.

Cyber Insurance News

Payment Gateway Company Reports Massive ₹16,180 Crore Cyber Theft
Payment Gateway Company Reports Massive ₹16,180 Crore Cyber Theft
In a startling revelation, the Thane Police have exposed a massive cyber heist, with cybercriminals pilfering an astonishing ₹16,180 crore. This...Read more
Cybercriminals Target Former Union Minister Dayanidhi Maran's Savings...
Cybercriminals Target Former Union Minister Dayanidhi Maran's Savings...
In a concerning development, cybercriminals managed to siphon off ₹99,999 from the personal savings account of Dayanidhi Maran, the former Union...Read more
Mumbai Police Nab Four Cyber Fraudsters in Extensive 22-Day Operation
Mumbai Police Nab Four Cyber Fraudsters in Extensive 22-Day Operation
In a 22-day operation spanning four states, including Uttar Pradesh, Rajasthan, Delhi and Madhya Pradesh, a Mumbai Police task force comprising seven...Read more
India Grapples with Mounting Cybersecurity Risks, According to Palo...
India Grapples with Mounting Cybersecurity Risks, According to Palo...
India is confronting a significant threat of cyberattacks aimed at its critical infrastructure, public sector, and essential services, as per a report...Read more
Pune-Based Engineering Supplies Firm Loses Over 22 Lakh in Cyber Scam
Pune-Based Engineering Supplies Firm Loses Over 22 Lakh in Cyber Scam
Pune City police uncovered a suspected 'man-in-the-middle' cyber attack that cost a Pune-based engineering supplies firm more than 24,000 Euros...Read more
Cyber Insurance Articles
As per the Indian Computer Emergency Response Team, 12.67 lakh cyber-attacks were registered by November 2022...Read more
21 Mar 2023 by Policybazaar 10890 Views
We live in the digital era. Now, almost everything is possible online as every other organization is going digital...Read more
12 Apr 2022 by Policybazaar 11110 Views
Every shop owner must put in extra efforts to make their retail store as safe as possible. To create a secure...Read more
29 Apr 2022 by Policybazaar 5893 Views
In this ever-evolving and the technologically-driven world, cyber-attacks have been increasingly common and a...Read more
29 Nov 2022 by Policybazaar 1395 Views
With the emergence of new technology, industries are prone to the risk of cyber-attacks.. Upon imposing the...Read more
11 Apr 2023 by Policybazaar 1503 Views
Cybersecurity vigilance is crucial to safeguard against phishing...Read more
15 Mar 2024 by Policybazaar 168 Views
In a fast-paced business environment where every minute counts...Read more
13 Mar 2024 by Policybazaar 247 Views
Ransomware risks are on the rise, posing a significant threat to...Read more
13 Mar 2024 by Policybazaar 221 Views
The rise of smart automobiles has ushered in a realm of...Read more
27 Dec 2023 by Policybazaar 404 Views
Wearable technology has revolutionized healthcare, offering a...Read more
15 Dec 2023 by Policybazaar 308 Views
Policybazaar for Business - Cyber Insurance - Customer Reviews
View all
4.5/5
Based on 47 reviews
4.5
out of 5
Based on 47 reviews
12 users
34 users
1 users
0 users
0 users
4.3 October 11, 2022
Aarti Singh
Knowledegable Team
The representatives at PolicyBazaar were knowledgeable, patient and genuinely committed to helping me find the best insurance policy for my requirements. They took the time to answer all my questions and provide valuable guidance, ensuring that I had a thorough understanding of the coverage details and terms. THANKS.
Agra
4.3 October 06, 2022
Amit
Quick And Hassle Free
After seeing a rise in cyber attacks in many of the companies, i decided to purchase a cyber insurance policy for my start up. I went on the Policy Bazaar website and learned about the coverage in detail and purchased it from their website only. It was quick and hassle-free purchase.
Nashik
4.5 October 04, 2022
Pinku
Paperless Process
We bought the contractual liability insurance from policybazaar and received the best overall package. The process was paperless as we applied for insurance online and the support was amazing.
Surat
4.5 October 03, 2022
Aashish
Extensive Coverage
We thoroughly checked all the benefits and features and decided to buy a contractual liability policy from Policybazaar. It provides all the necessary features to safeguard our business against any loss.
Ahemdabad
4.5 October 02, 2022
Nishant
Easy To Buy
It was easy to buy insurance from Policybazaar and customer support was also amazing to clear all the doubts. Contractual liability insurance is essential for my business and I could not get a better deal than this.
Udaipur
4.5 October 01, 2022
Puneet
Easy Plan Comparision
An ideal Contractual Liability Insurance policy purchased to protect our business that we ecounter in our everyday operations. Policybazaar offers a platform to compare multiple plans.
Assam
4.5 September 30, 2022
Govind
No Broker And Paper Work
Great experience at Policybazaar. We did not know that buying Contractual Liability Insurance could be that easy. Also there is no broker and paperwork.
Jharkhand
4.8 September 29, 2022
Rinku
Perfect Insurance Coverage
I purchased Contractual Liability Insurance from Policybazaar and the coverage they provided is perfect to keep my hardware business safe various unforeseen instances.
New Delhi
4.5 March 18, 2022
Ishan
Cloud Storage Cover
I wanted to purchase a cyber insurance policy could provide coverage for the data stored in cloud network. I went on the Policybazaar website and look up for plans that would provide me with this coverage. I compared different plans and in a matter of minutes i found the right cyber insurance plan that would fit my requirement.
Ajmer
4.5 March 17, 2022
Anurag
Good User Interface
I was looking for a cyber insurance policy online. After looking for the insurance plan online I landed on the Policybazaar website. Trust me, the user interface of the website is so good that i was able to locate the cyber insurance plan and purchase it in not more than 10 minutes. Thanks Policybazaar.
Delhi