Given the recent spate of ransomware attacks around the globe, Indian companies are growing cautious and making sure their cyber insurance policies adequately cover the threats of a connected world.
Marsh India Insurance Brokers Pvt Ltd, an insurance advisor and broker with over 1,600 corporate clients, has seen a 15 per cent rise in enquiries by corporates in the last 45 days on the scope of their existing cyber security coverage. Companies are also asking for tailored products that can take care of the fallout in case of a cyber attack.
Customised cover
One mid-size insurer said it is working on providing cover to a shipping client, wherein if a client’s computer system is compromised, the insurance would not just indemnify these losses but also cover the loss arising from delays in delivery or loss in the value of goods transported, if they are perishable.
Some insurance companies have even created a floater policy that covers the fallout of cyber attacks in any of their investee firms.
Wannacry
Ransomware is a kind of malicious software spread by hackers that locks access to a computer unless a ransom amount is paid. The Wannacry ransomware attack affected more than 3 lakh computers globally in May. It was followed by the more sophisticated Petya attack last month, which took root in Ukraine and Russia and spread to businesses in the US, Europe and even shut down operations at the Jawaharlal Nehru Port Trust in Mumbai.
“Comprehensive cyber insurance is crucial for e-commerce start-ups as it covers them from internet-based risks, and against losses such as data or privacy breach, network security claims, business-interruption loss, hacker theft and cyber extortion,” said Sasikumar Adidamu, CTO, Bajaj Allianz General Insurance.
“Hackers were savvier with the second Petya attack,” said Anup Dhingra, Senior V-P, Marsh Insurance Brokers. “The ransom was 300 per cent higher and the hackers left no wiggle room for targets.”
“In India, many machines still run on outdated software. Since the last two attacks, we’ve seen clients ask pointed questions on their existing cyber insurance policies and what they do and don’t cover,” he added.