Following data theft that affected 32 lakh debit cards recently, insurers see rise popular for cyber insurance and also have warned of a spike in cyber risk cover premiums.
In the biggest-ever security breach in the domestic banking sector, over 32 lakh charge cards of various banking institutions were ‘compromised’ after a cyber malware attack in the ATM systems of Yes Bank in May-June.
Following this, several banking institutions including state-run SBI, private sector lenders ICICI Bank, HDFC Bank, Axis Bank and Yes Bank remembered over 32 lakh credit card since September, even though many others blocked those credit cards which were suspected to have been compromised and asked consumers to change personal identification numbers(PINs) as a precautionary solution.
At present, there are incredibly few non-life insurers that have cyber insurance offerings plus some of them include ICICI Lombard, Bajaj Allianz, HDFC Ergo and Tata AIG.
Not one of the state-run players is into this segment yet.
Because per industry estimate, the current market scale legal responsibility insurance is Rs 1,800 crore which internet insurance could be 5-7%.
“In the light of recent incidents, we have seen a surge in the number of questions for these covers and be prepared to see 10-15% development in cyber insurance addresses sold, ” Bajaj Allianz General Insurance chief specialized officer (non-motor cover) Sasi Kumar Adidamu told PTI.
However, it still has not seen a substantial rise in such cover in the domestic market regardless of the increasing cyber threats.
Till day, there may be around 500 active policies in the domestic market, this individual added.
For Bajaj Allianz GIC, cyber insurance high quality varies between 2 and 3% of the total liability premium.
Cyber insurance covers are largely used by banks, IT & ITeS, and e-commerce companies.
Though the product has been around globally for a long time, it gained credence in the domestic market about 3 years back.
However, HDFC Ergo, which launched internet cover policies earlier this year, saw the tremendous response so far and is expecting a further jump in demand.
“We have experienced 40% growth in internet insurance in recent previous and given the present scenario in the bank sector, we expect the number to help raise,” HDFC Ergo executive overseer Mukesh Kumar said, adding, “We are also anticipating a reasonable embrace the premium. ” SBI Basic is also intending to come up with an internet insurance product.
“We are looking at coming up with a cyber insurance product, keeping because of the increasing demand, particularly after the recent episode of debit card data robbery, ” said its controlling director & chief professional|exec|business}, Pushan Mahapatra.