April 22, 2019 Mumbai: Most of the digital devices (including computers, laptops, tablets, and smartphones) are connected to the internet. As the number of digital devices increase in internet penetration an individual or an organisation becomes more vulnerable to various cyber threat. A cyber insurance policy is designed to get optimum protection against potential cyber threats and risk exposure by offsetting costs involved with recovery after a cyber-related security breach or similar event.
Over time, digital advancement has exponentially increased cyber risk exposures for almost all types of businesses. Cyber attackers work on the theory that majority of the businesses do not spend adequately on shoring up their cyber security. They work on the presumption that cyber attack techniques that have been used on large enterprises will work on relatively smaller enterprises. It is therefore extremely important for businesses to be well prepared for these emergencies.
To help defend such businesses from resultant financial or reputational losses, SBI General Insurance (SBIG) has launched its new product - Cyber Defence Insurance. The newly-launched product will offer cyber insurance to businesses. While in the initial phase the intent is to focus on small medium-sized enterprise (SME), mid-market businesses, it can cater to the larger business conglomerates as well.
The policy offers protection against the growing threat of cyber breaches and designed to protect against major insurable cyber exposures like hacking attacks, identity theft, disclosure of sensitive information and business interruption.
Speaking on the launching ceremony Subramanyam B, Head, Underwriting and Reinsurance, SBI General Insurance said,
“Cyber insurance is an emerging sector for increasing resilience among businesses and is one solid step in shoring up the cyber defence. Because there is no 100 percent security, businesses need to move towards cyber-resilience combining security measures and risk management. The product offers various post event services that a customer needs when a cyber event happens including delivery of a 24/7 incident response service and offers the policy holder immediate support when a cyber incident occurs. This in turn ensures that our customers are well protected at every step in their growing business.”
SBIG’s cyber defense insurance comes with CyRUSS (Cyber Risk Underwriting and Solution Suite) – a cloud-based tool for commercial cyber polices including risk assessment, ongoing risk management and claim management as well. It also offers both first and third-party coverage benefits including coverage options for contingent business interruption, system failure, reputational loss, multimedia liability and computer crime.
The crisis response service that comes with this product enables swift and efficient management of cyber events and provides IT forensic investigations, legal advice, reputational and PR management. The cost of most of the cyber insurance depends upon several risk factors but for most small businesses annual premium.