Several years after Indian industry started demanding Cyber Crime Insurance, insurers appear to have realized that there is a potential business here worth exploring. (See article here). In our earlier article we had highlighted that after the recent G Mail hacking report, the interest seem to have got a boost.
While three companies namely HDFC ERGO, TATA AIG and ICICI Lombard appear to have started writing insurance policies, it appears that they are still in the process of writing customized policies for specific large clients. They may be banking more on their relationship with the existing customers in other products rather than developing an exclusive product for the “Cyber Crime Risk”.
The premia talked about in the media also appear to be unrealistically high and indicate that the insurance agencies are yet to get a grip on the risks and the acturial evaluation.
In order that the industry picks up such insurance products, it is necessary that the products must be affordable and also promise quick settlement of claims.
At present we donot have any experience as to the settlement of claims and therefore we need to await further developments to understand how the industry is set to progress in the coming days.