“One single vulnerability is all an attacker needs”- Window Snyder
INTRODUCTION
Cyber refers to the utilization of computers, the web, electronic network, and electronic information databases and risk is that the chance or probability that an individual is harmed or experience an adverse health effect if exposed to a hazard. it should also apply to situations with property or equipment loss, or harmful effects on the environment.
According to Shashank Bajpai Chief Information Security Officer at ACKO, “any risk emerging from the use of information and communication technology (ICT) that compromises the confidentiality, availability, or integrity of data or services. The impairment of operational technology (OT) eventually leads to business disruption, (critical) infrastructure breakdown and physical damage to humans and property.”
Cyber risk is either caused naturally or is man-made, where the latter can emerge from human failure, cyber criminality (e.g., extortion, fraud), cyberwar, and cyber-terrorism. It is characterized by interdependencies, potential extreme events, high uncertainty concerning the data and modeling approach, and risk of change[1].
With the spotlight on the digitization of banks and a cashless economy, cyber risk has also come to light joined of the most important threats in India. These include phishing, scanning, or probing, site intrusions, ransomware, fraud, and personal data breach, etc.
As more Indians have brought a rise within the amount of personal data being generated, transmitted, and stored on various devices, cybersecurity specialists believe there should be a critical framework to predict and stop cybercrimes.
It’s not just the large corporations that are liable to be hacked by a cyber-attack. Almost 60% of small businesses have experienced a knowledge breach which might damage the organization’s reputation and put the business and employees in danger. thanks to which the requirement for cyber risk insurance arises.
WHAT IS CYBER RISK INSURANCE?
According to Martin Kreuzer and Jürgen Reinhart, who are the experts of the cyber risk, in 2019 the number of unidentified data thefts and unauthorized personal access to data in the last twelve months increased by roughly one third. Worldwide, some 8.5bn data sets were affected.[2]
And in 2020, the networked world and advances in technology, such as the new 5G standard or artificial intelligence, present opportunities in every social area. At the same time, however, they increase dependencies and open new attack points for cybercriminals who are operating with an increasing level of professional sophistication.[3]
Cyber risk insurance provides a guarantee against business accountabilities for a cyber hack. A cyber contract is supposed to mitigate risk just in case of a cyber-attack or phishing attempt which will breach sensitive data like Mastercard details, account numbers, business records, or social safety codes with malicious intent. With the assistance of cyber insurance, one can safeguard self and relations against financial risks thanks to fraud, Unauthorized Online Transactions, Cyberbullying, Cyber extortion.
According to the Norton Cyber Security Insights report, at least 49% of India’s population that uses the internet are affected by cybercrime. The report also suggested that there is a cybercrime taking place every 10 minutes in the country. The Computer Emergency Response Team reported 27,482 cybercrime cases in the first half of last year.[4]
WHO CAN BUY THE POLICY?
Any person above 18 years of age: Every such individual is at risk of online threats. Hence, buying cyber insurance can safeguard against online fraud. The policy is often bought by anyone who is eighteen years and above and may be bought for members of the family.
ELIGIBILITY
Both individuals and firms should purchase a cyber risk contract.
WHAT DOES THE CYBER INSURANCE COVER?
Besides legal fees and expenses for cybersecurity, cyber insurance can help you with the following.
• Notifying you about potential cyber-attack and data breaches
• Restoring personal identities in case you are affected
• Cost of recovering lost data and replacing the compromised data
• Expenses incurred for repairing damaged computer systems
• Monitoring and protecting against damages caused by a virus attack
NEED FOR CYBER RISK INSURANCE!
“Cyber-attacks and sensitive data breach can be detrimental for business and the reputation of an organization”
People nowadays are unknowingly getting suffering from various cyber-attacks while browsing the net, storing on transporting the info on various devices, doing digital transactions, and surfing through various social media, because the cyber risk has undeviating shot up. These cyber-attacks and infringements which affected around 2.5 lakh computers will be deleterious. The establishment of viruses and unauthorized acquiring are well-known examples.
Companies with access to non-public & guidance about their customers have a responsibility to stay secure. Equally, companies that have an online presence or dependency on technology have emerging content and transactional exposures.
The threat of cybercrimes is on the incline at a rapid pace and the nature of risk is considerably more dynamic and possibly devastating in many situations.
According to cyber experts, “It stands a reason to protect and minimize the risk of these data breaches through cyber liability insurance. In fact, around 70% of the companies have transferred the risk of cyber-attack to a third-party insurance company. The demand for cyber insurance cover has increased by 50% in the last year with top companies including some of the state-run banks buying it.”
CONCLUSION
The threat of cybercrimes is on the incline at a rapid pace and the nature of risk is considerably more dynamic and possibly devastating in many situations.
One of the foremost obstacles related to cyber and privacy insurance policies is that much of the scope these forms provide is, to some extent, also available within other styles of insurance policies. Therefore, additionally, to know the precise scope of safeguard cyber and privacy policies make available, buyers must also concern themselves with the question of how best to coordinate their cyber and privacy policies with other policies that provide similar aspects of coverage.
According to a recent cyber risk survey (Allianz Risk Barometer 2019), the biggest risk for India Inc. is cybercrime. This poses more danger than other conventional issues like regulatory changes, market development, and increasing competition.[5]
Symantec, a global cybersecurity leader, has reported that India witnessed a 457% growth in cybercrime in the last half a decade. India ranked second in the list of nations most affected by cybercrime and related threats between 2016 and 2018.[6]
Since crime is increasing with the advancement of technology, cyber insurance plays an important role for an entity or individual operating in India. the sole problem is that not many folks are tuned in to these cyber insurance policies and hence, it's important to form the public attention to these policies.
REFERENCE [1] www.actuariesindia.org [2] https://www.munichre.com/topics-online/en/digitalisation/cyber/cyber-insurance-risks-and-trends-2020.html [3] https://www.munichre.com/topics-online/en/digitalisation/cyber/cyber-insurance-risks-and-trends-2020.html [4] Norton Cyber Security Insights report [5] https://securenow.in/insuropedia/cyber-insurance-everything-you-need-to-know/ [6] https://securenow.in/insuropedia/cyber-insurance-everything-you-need-to-know/