Cybersecurity Insurance

One morning when you wake up and open your laptop for completing the unfinished work of your report, you notice that your important digital file is locked and ransomware asks you to pay Rs 1,00,000 for recovery of the file, what you will do?
This is where cyber-security Insurance plays an important role. Cyber security insurance is a very important risk management tool for IT companies, tech companies, and any other company that has access to a lot of personal information, especially information that is sensitive in nature.

The main reason to purchase this product is that it covers real risks that are happening in the world today. The Indian government has spurred the use of digital technologies by introducing digital locker and demonetization. This move towards a digital economy is probably to help trigger a fresh wave of economic growth, attract more investment, and create new jobs, across multiple sectors. This leads to an increasing amount of consumer and citizen data that will be stored digitally and a large number of transactions will be carried out online, by companies, individuals as well as government departments. This makes India a macro target for cyber-criminals and hackers. Out of the top ten most targeted countries by cyber attackers, India ranks fourth. There are lot of cyber-attack incidents found in 2018 such as SIM Swap Fraud, Cyber Attack on Cosmos Bank and ATM System Hacked in Kolkata. About 22,000 websites were hacked between the months of April 2017 and January 2018. As per Indian Computer Emergency Response team over 114 government websites were affected by malware propagation out of 493 websites

Thus this insurance product is designed to alleviate losses from all cyber-attacks. This will automatically reduce the risk of both Individual and Firm. Thus one can say that one of the main cyber-risks is to think they don’t exist. The other is to try to treat all potential risks.
Thank You
Regards
Author: Ayush Choudhary
Kautilya 
IBS Mumbai