Cyber Fraud Victims Look to Cover Losses; Insurance Policies Gain More Preference

Numerous citizens have fallen victim to cyber scams, losing millions of rupees to cybercriminals. Victims are left with no choice but to give up as very few of these thieves have been caught. Nonetheless, in order to safeguard themselves against financial fraud, people have made the decision to purchase insurance.

These days, both corporate and individual coverage for cybercrimes is provided by insurance companies. To guard against financial loss due to phishing, cyber extortion, and online transaction fraud, they are purchasing policies.

Even though it is still in its infancy in India, SMEs and larger clients seem to be accepting of cyber insurance.

A general insurance company official reported a sharp increase in interest in purchasing a cyber insurance policy. Corporates in the manufacturing, BFSI, and IT sectors are showing a lot of interest in implementing these policies. Unfortunately, due to a lack of awareness, the adoption of these policies is not as high as it ought to be.

According to a representative of another insurance provider, the average premium payout for a Rs 100 insurance policy is 0.7%; prior to the pandemic, this amount was 0.4%.

A company’s new corporate cyber policies have increased by 25% to 30%. Its retail cyber policy is relatively new to the market, having been introduced in 2020.

Conversely, many businesses claim that acquiring cyber insurance is difficult. Currently, insurance companies are trying to expedite the onboarding process for new policies and streamline the purchase procedure.

Shreyas Vange

(Source – TOI)