IRDAI is likely to ask insurance companies to offer a standard cyber insurance policy to all businesses including MF distribution and advisory business.
The insurance regulator has set up a panel to examine the need for a standard cyber insurance. IRDAI said, “Amid the Covid19 pandemic, there are rising incidences of cyberattacks and a growing number of high-profile data breaches. It is felt that cybersecurity is the most important need for all sectors today to address the numerous risks posed by cyber-attacks.”
IRDAI further said, “Since the online exposures offices, business organizations and other establishments face continue to increase even as they become more globally networked and complex, insurance products need to adapt to the changing environment. The general liability policies do not cover cyber risks and cyber insurance policies currently available are highly customized for clients in a new and quickly growing market. Hence, it is felt that a basic standard product structure is required to provide insurance cover for individuals and establishments to manage their cyber risks.”
The nine-member team headed by P Umesh, Consultant Liability Insurance will be responsible for:
- Studying various statutory provisions on cyber security
- Evaluating critical issues involving legal aspects of transactions in cyber space
- Examining various types of incidents involving cyber security in the recent past
- Examining existing cyber insurance policies in India and other markets
- Recommending scope of cyber liability insurance
- Exploring possibility of developing standard coverages, exclusions and so on
The working committee will submit its report by December 22, 2020.