IRDAI Sets Up Panel To Examine Need For Standard Cyber Insurance Product
An illuminated wall displays a stream of binary coding. (Photo: Chris Ratcliffe/Bloomberg)

IRDAI Sets Up Panel To Examine Need For Standard Cyber Insurance Product

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The Insurance Regulatory and Development Authority of India has set up a panel to explore possibility of a basic standard product structure to provide insurance cover for individuals and establishments to manage their cyber risks.

The general liability policies do not cover cyber risks, and cyber insurance policies currently available are highly customised 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," said IRDAI while announcing setting up a working group to examine the need for standard cyber liability insurance product.

The panel, headed by P Umesh, has been asked to study various statutory provisions on information and cybersecurity, and to evaluate critical issues involving legal aspects of transactions in cyber space.

It will also examine various types of incidents involving cybersecurity in the recent past and possible insurance coverage strategies for those, and the cyber liability insurance covers available in Indian market and in other developed jurisdictions.

Also read: RBI Proposes Five-Pillared Approach To Deal With Cybersecurity Issues In Urban Cooperative Banks

The nine-member panel has been asked to recommend the scope of the cyber liability insurance covers for the present context and for the medium term, and explore possibility of developing standard coverages, exclusions and optional extensions for various categories.

IRDAI noted that amid the Covid-19 pandemic, there are rising incidences of cyberattacks and a growing number of high-profile data breaches.

Also read: Five Less-Known Ways You May Be Tricked Into Compromising Your Data Online

The regulator felt that cybersecurity is the most important need for all sectors today to address the numerous risks posed by cyberattacks.

The working group has been asked to submit its report within two months.

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