Key Insurance Companies to Issue Cyber Insurance to Various Banks

As per Sanath Kumar, CMD, National Insurance, they provide a variety of cyber insurance coverage to the banks, but cyber liability insurance is highly demanded.

The cyber insurance sector has witnessed 20 percent hike in the Bajaj Allianz current fiscal. When it comes to rising cyber threats cases, the insurance sector has seen 10-15 percent intake of the cyber liability coverage, according to Sasikumar Adidamu, Chief Technical Officer (Non-Motor), Bajaj Allianz General Insurance.

The average purchase limit by most of the banks is USD 10-20 Million; it is quite low as compared to the exposure that these banks have to face.

By default, banks have exposure to a wide variety of cyber risks. These risks include loss of securities and money, liabilities due to loss of third-party data, denial of service attacks causing loss of business, ransomware attack inducing ransom payments, loss of confidential data, the risk of website or app defacement, ATM roll backs etc.

Cyber insurance provides cost-effective solutions to minimize the risk of cyber attacks.