The Insurance Regulatory and Development Authority of India (IRDAI) is an autonomous body dealing with regulating and promoting the insurance industry in India. It is true to say that it controls the insurance companies in the country.
Recently, IRDAI has started planning to examine the need for cyber security insurance products and formed a working group chaired by P Umesh. It is assumed that there will be standard coverage for individuals and organizations against cyber-attacks and frauds.
During the COVID-19 pandemic, people have witnessed a rise in cyber attacks in India and other countries. Likewise, there were many high-profile data breach attacks noticed amidst the pandemic. Cyber security is the need of the hour and the same as cyber security risk coverage.
Currently, general insurance plans don't cover cyber security liabilities. Hence, IRDAI is thinking about the issue and looking to come up with a standard cyber security coverage plan.
IRDAI said in a circular:
"Hence, it is felt that a basic standard product structure is required to provide insurance cover for individuals and establishments to manage cyber risks,"
The working group will determine the past cyber security cases to draft the insurance policy strategies. The insurance plans will be created as per the current cyber scenario on a medium scale with some exclusion and various extension options.
Besides, the group got a deadline to submit their report within 2 months.
Stay tuned with ISOEH (Indian School of Ethical Hacking) for more cyber security updates.
Stay safe from cyber-attacks!