In response to the escalating cyber-attacks in India, private insurance companies such as HDFC Ergo General Insurance and Bajaj Allianz General Insurance are targeting cyber attackers to deal with claims stemming from ransomware incidents, according to a report in The Economic. We are taking proactive measures, such as negotiating withtimes
India has recently become one of the most targeted countries for cyberattacks in the world.
In addition to improving their cyber insurance products, insurers are changing their terms and conditions and strengthening their contracts with customers to strengthen their capabilities in the rapidly growing cyber insurance space.
Insurance companies often work with intermediaries that specialize in negotiating with hackers, often referred to as “threat actors.”
These institutions play a key role in facilitating negotiations if hackers demand a ransom in exchange for not releasing stolen data. Experts estimate that at least five to 10 large-scale lawsuits have been resolved through such negotiations in the past year.
The main objective of insurance companies in negotiations is to determine the liability of the attacker for the cyber attack and to try to minimize the ransom payment.
The Economic Times report quotes Hiten Kothari, chief underwriting officer and actuary at HDFC Ergo General Insurance, as explaining that the ransomware negotiation service provider offers ransomware remediation, public relations support and post-attack monitoring. It explains that it provides a wide range of services such as , detection, and response. Services and products designed to prevent future attacks.
Official numbers on these negotiations are difficult to come by, but industry experts suggest that about five to 10 deals may have closed in the past year.
The reduction in reinsurer capacity over the past year or two due to the high volume of overseas claims is prompting a reassessment of cyber insurance exposures.
Experts assessing the impact of cyberattacks say cybercriminals are strategically publishing details of data breaches on the dark web to increase pressure during negotiations and increase potential ransom amounts. I’m pointing it out.
Companies often assess the business impact of a data breach to determine whether paying a ransom is the most practical option, an Economic Times report claims.
This evolving cyber threat landscape has led to the introduction of stricter terms and contracts for cyber insurance policies. Companies are now discussing cybersecurity concerns in their boardrooms, and insurance policies are being adapted to address new risks. Collaboration between insurance companies and cybersecurity companies is increasing to provide proactive risk management solutions.
As of the latest data, HDFC Ergo has observed a 25-30% increase in new corporate cyber policy registrations.
In response to the increase in payouts, insurance companies are incorporating limits on ransomware claims into new policies, resulting in higher premiums and higher deductibles.
India’s corporate cyber insurance market has seen significant growth, with premiums soaring 50-60% in the past year. Its current market value is around 600 million rupees, up from 400 million rupees just six months ago.
The growing demand for cyber insurance is not limited to large companies in the IT, IT and BFSI sectors, other industries such as manufacturing and pharmaceuticals as well as mid-sized companies are now also seeking coverage.
However, small business policies may vary based on the strength of your systems and technical infrastructure.
Cyber insurance continues to evolve, providing more tailored coverage that takes specific risks and compliance requirements into account.
Insurers are taking a comprehensive risk assessment approach, leveraging detailed surveys to assess a company’s cybersecurity measures, including the strength of its firewalls and security infrastructure.
There will then be a focus on strengthening technology infrastructure and appointing a Chief Information Security Officer (CISO), and premiums will be priced accordingly.