Insurance Regulator formulates the Working Group to Study Cyber Liability Insurance
A recent report Published by the DSCI, highlighted the viability of a solution i.e. Cyber Insurance to Growing problem which is causing huge amounts of Financial Losses, to inducstries and Individuals every Insurance. The Report projected that the Global Cyber Insurance Market could grow upto 24 Billion USD and while India is at a very nascent stage of this Growing Market, the requirement for the same will surely be felt in the future because of the Growing Internet Penetration and access to Technology in India. The report also highlighted that Indian Market and various companies are in the dire need of such a solution because of an Humungous increase of Online transcations, Banking Functions and the increasing International Statutary Obligations which impose huge Liabilities and Fines.
A similar contention was adopted by the Indian Insurance Regulators, i.e. The Insurance Regulatory and Development Authority of India (IRDAI), and decided to take the discourse in the field of Cyber Insurance further. The IRDAI also ackhnowledged and bought in the Context of Global Pandemic which has led to an increase of cases of Cyber Crimes and Frauds against Individuals and Industries and decided to formulate a special working group to deal with this issue, through an Order passed on 19.10.2020.
The working Group has been created, keeping in mind that High Profile Cybercrime and cybersecuirty lapses and breaches and increasing day by day, which require a solution that sets up a baseline and a basic product structure which covers these lapses and crimes. Furthermore, the working group has been created to fulfill the following objectives.
1. To study the various Statutary provisions of Information and Cyber Security and analyze various legal issues of transactiosn in cyber space.
2. To study the various incidents involving a lapse or breach of Cyber Secuirty measures in the recent times and design Strategies for creating Insurance covers for these Incidents.
3. To study the various Products which are already present in the market, in India and Globally.
4. To recommend the scope of Liability covers for present context and the coming future and also explore the possibility of developing standard coverages, exclusions and optional extensions for various categories.
This working group, consisting of representatives of Both the Industries and Regulatory and Government Authorities, of India will hopefully create a standard product structure which will be beneficial for all the Stakeholders.