Cyber Insurance Is On The Rise, Says Deloitte Report (Image: pixabay)
With the technology advancing around the world, organizations are now also aware about the surge in cyber crimes. Organizations are willing to make huge investments in the cyber security field as cyber breaches will result in tangible costs and brand degradation. Cyber insurance enables firms to mitigate the risk of cyber crimes including malware, ransomware, distributed denial-of-service (DDoS) attacks.
According to a report, published by the Deloitte, cyber insurance market in India is likely to achieve a growth by 27-30 percent in the coming years. The report reveals that Indian cyber insurance sector, which is currently valued at USD 50-60 million, is gaining momentum. It also marked a steady 27-30 percent compound annual growth rate (CAGR) in the past three years.
In the Deloitte report, named as ‘Cyber Insurance in India’, it was mentioned that the growth in cyber insurance sector may to continue for the next 3-5 years. This growth will be the result of the increasing awareness of the need for cyber insurance. This report also stated that IT, pharma, and manufacturing industries are the prime targets of cybercriminals. Supply chain, retail, critical industries, and finance are also likely to be the victims of the future cyber attacks. “These sectors are typically early adopters of cyber insurance,” the report mentioned.
A survey, which is included in the report, revealed that several Chief Information Security Officers (CISO) are willing to hike the spending on securing their digital infrastructure over the coming years. Deloitte said in a statement that around 60 percent of respondents, who participated in this survey, needs to expand insurance coverage without wanting to invest much in enhancing their digital security. Debashish Banerjee, Partner and Insurance sector leader, Deloitte India, said that cyber insurance is not just an expense but a strategic investment. He also added that the organizations must prepare to tackle surging cyber threats.
