Top 10 Cyber Insurance Companies in India

  • postauthorOnsurity Editorial
  • postdateJuly 10, 2024
  • postreadtime12 min read
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Cyber Insurance Companies

Cyber insurance in India is fast evolving to meet the needs of businesses in the digital age, offering a range of protections against the financial impact of cyber incidents.

The size of the cyber insurance market in India is currently valued at a whopping $50-60 million. In fact, it is expected to grow at a compound annual growth rate (CAGR) of a robust 27-30% over the next 3-5 years, driven by increasing awareness of the need for cyber insurance. Interestingly, the cyber insurance market is expected to maintain its growth rate over the next decade, making cyber insurance products more common and valuable for businesses of all sizes.

Given the growing importance of cyber insurance, let’s explore the companies that provide well-designed and customisable policies tailored to meet your specific needs.

Beginning with basics first! 

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What is Cyber Insurance?

Cyber insurance, also known as cyber risk insurance or cyber liability insurance, is an insurance coverage designed to protect businesses from financial losses and liabilities resulting from cyber incidents.

These incidents can include data breaches, cyber-attacks, network security failures, ransomware attacks, business interruption due to cyber incidents, and other digital threats. 

Top 10 Cyber Insurance Companies in India 

Here is a list of top 10 companies known for providing cyber insurance coverage in India:

1. Onsurity:

Provides SMEs with robust protection against online threats.

2. ICICI Lombard General Insurance:

Offers cyber insurance policies covering various cyber risks and liabilities for businesses.

3. HDFC ERGO General Insurance:

Provides cyber insurance solutions aimed at protecting businesses from cyber threats and incidents.

4. Bajaj Allianz General Insurance:

Offers cyber insurance policies that include coverage for data breaches, cyber extortion, and related liabilities.

5. Reliance General Insurance:

Facilitates cyber insurance coverage designed to mitigate financial losses arising from cyber incidents.

6. Tata AIG General Insurance:

Provides cyber insurance solutions that cover expenses related to data breach response, cyber extortion, and regulatory fines.

7. SBI General Insurance:

Offers cyber insurance policies aimed at protecting businesses against cyber risks and liabilities.

8. Mitigata:

Mitigata’s cyber insurance policy offers coverage to businesses in India, including protection against financial losses due to cyber incidents.

9. Future Generali India Insurance Company:

Offers cyber insurance solutions that include coverage for cyber-attacks, data breaches, and related liabilities.

10. Bharti AXA General Insurance:

Facilitates cyber insurance policies designed to protect businesses from cyber threats and incidents.

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10 Best Cyber Insurance Companies in India 

Onsurity offers a cyber insurance product specifically designed for India’s SMEs. The policy covers a range of cyber incidents, including data breaches, ransomware attacks, business interruptions, and legal expenses. Onsurity offers customised plans that fit the needs of each business, including coverage for upper management such as directors, CFOs, CTOs, and CISOs.

The cyber insurance policy from Onsurity starts at ₹50,000 per year, making it an affordable option for SMEs.  By focusing on SMEs, Onsurity addresses the specific challenges these businesses face in managing cyber risks.

top cyber insurance companies in india - onsurity

2. ICICI Lombard General Insurance  

ICICI Lombard’s cyber insurance typically covers expenses related to data breach response, including forensic investigation, data recovery costs, and business interruption losses.

The company also provides third party coverage by covering liabilities arising from privacy breaches, such as legal fees, regulatory fines, and settlements with affected individuals or entities. ICICI Lombard General offers round-the-clock support for policyholders facing cyber incidents, including access to experts and specialists who can assist in managing and mitigating the impact of cyber threats. 

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3. HDFC ERGO  

HDFC ERGO offers the Cyber Sachet Insurance Plan, which is a comprehensive cyber insurance policy designed to protect individuals and businesses against various cyber risks. The policy offers a wide range of covers, including financial losses, data restoration, device replacement, legal costs, and more.  

The policy is fully customizable, allowing you to choose the cover of your choice and select the sum insured amount as per your wish. Cyber Sachet Insurance Plan starts at ₹2 per day, making it an affordable option for individuals and businesses. 

4. Bajaj Allianz General Insurance Company

Bajaj Allianz General Insurance Company provides a comprehensive Cyber Insurance Policy that allows coverage against various cyber threats. The policy covers a range of risks including identity fraud, phishing, cyberstalking, data breaches, and more.  

The Bajaj Allianz General i\Insurance offered Cyber Insurance Policy is customizable, allowing customers to choose the coverage amount as per their needs, starting from ₹1 lakh up to ₹1 crore.  The policy is affordable, with premiums starting as low as ₹2 per day. 

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5. Reliance General Insurance  

Reliance General Insurance’s cyber insurance policy is a comprehensive and customizable solution designed to protect individuals and businesses from various cyber threats.  

The policy offers a range of covers, including financial losses, legal expenses, data restoration, device replacement, cyber extortion, identity theft, social media, IT theft, malware, phishing, email spoofing, media liability, privacy breach, and data breach. It is an affordable and flexible option for individuals and businesses looking to mitigate cyber risks. 

6. Tata AIG General Insurance 

Tata AIG offers comprehensive cyber insurance solutions, including the CyberShield and Cyber Risk Protector policies, to cater to the growing demand for cyber risk management in India. They offer a wide range of coverages to protect against various cyber threats faced by individuals and businesses. 

The policies from Tata AIG have customizable coverage limits, with an aggregate limit of liability specified in the policy schedule. They provide worldwide coverage and can be tailored to the specific needs of the policyholder. The policies are available to both individuals and businesses, with a focus on addressing the cyber risks faced by SMEs. 

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7. SBI General Insurance

SBI General Insurance, a subsidiary of the State Bank of India. It offers cyber insurance policies tailored to protect businesses from the increasing risks posed by cyber threats. SBI General cyber insurance typically covers expenses related to data breach response, including forensic investigation, data recovery costs, and business interruption losses. 

The company may also offer additional services such as cybersecurity assessments, risk mitigation advice, and crisis management support to help businesses strengthen their cyber resilience. SBI General Insurance also provides 24/7 support to policyholders facing cyber incidents, including access to experts and specialists who can assist in incident response and mitigation. 

8. Mitigata  

Mitigata offers a range of insurance policies designed to protect against financial losses resulting from cyber-attacks, data breaches, and other cyber-related incidents. 

These policies cover expenses such as legal fees, customer notification costs, and credit monitoring expenses. Mitigata’s Active Insurance offers proactive digital protection, going beyond just reacting to threats. It provides ongoing safety for digital assets through continuous security efforts, ensuring peace of mind through continuous monitoring and protection.

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9. Future Generali India Insurance Company

The Personal Cyber Risk Policy from Future Generali India provides coverage against various online risks such as malware, phishing, cyberbullying, and IT theft. It includes coverage for breach of personal data or privacy, email phishing, cyber extortion, identity theft, email spoofing, cyber stalking, malware attacks, and IT theft. 

On the other hand, the Commercial Cyber Insurance from Future Generali India Insurance Company offers short-term commercial cyber insurance policies that cover various cyber risks. These policies include coverage for data breaches, cyber-attacks, and other cyber-related incidents. 

10. Bharti AXA General Insurance

Bharti AXA offers a comprehensive cyber insurance policy that provides coverage for both third-party liability and first-party losses. The key features include:

  • Third-party liability coverage for data breach, security and privacy liability, and media/internet communications. 
  • First-party coverage for business interruption, data restoration, cyber extortion, and incident response costs. 
  • Enhanced privacy regulatory coverage, including fines and penalties. 
  • Access to post-breach response services like IT forensics, legal advice, and public relations. 

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Benefits of Cyber Insurance for Businesses 

Cyber insurance offers several benefits to businesses, helping them mitigate financial losses and manage the complexities associated with cyber threats. Here are the key benefits of cyber insurance: 

1. Risk Mitigation

Cybersecurity measures such as firewalls and password managers can significantly reduce the risk of cyber-attacks. Cyber insurance policies help mitigate these risks by providing financial protection against losses due to cyber incidents. 

2. Recovery Resources 

Cyber insurance policies cover the costs of professional services to aid in recovery, including crisis management, legal, and public relations support. This helps businesses quickly respond to cyber-attacks and minimize financial losses. 

3. Limited Financial Liability 

Cyber insurance policies provide financial compensation to help businesses respond to cyber-attacks, covering costs such as system repair, lost revenue, and legal fees. This reduces the financial burden on the organization. 

4. Competitive Differentiation 

Having a cyber insurance policy can differentiate a business from competitors, demonstrating a commitment to protecting customer data and proactively preparing for cyber-attacks. This can enhance the business’s reputation and make it more attractive to investors and customers. 

5. Business Continuity 

Cyber insurance can cover business interruption losses, ensuring that businesses remain financially afloat during recovery efforts. This includes lost income and costs associated with operating from a temporary location or employing additional staff for recovery efforts. 

6. Risk Management and Prevention Services

Many cyber insurance providers offer risk management and prevention services, such as vulnerability assessments, employee training, and cybersecurity advice. These services help prevent cyber-attacks and enhance overall cybersecurity posture. 

7. Regulatory Compliance 

Cyber insurance policies can cover regulatory fines and fees, ensuring compliance with data privacy regulations. This is particularly important for businesses that handle sensitive payment information or other regulated data. 

8. Protection for Various Industries 

Cyber insurance is essential for various industries, including healthcare, financial institutions, government agencies, educational institutions, and companies with high revenue streams. These industries are frequently targeted by cybercriminals and can benefit from the financial protection and recovery resources provided by cyber insurance.

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How Much Does Cyber Insurance Cost?

The cost of cyber insurance in India can vary widely depending on several factors, including the size and industry of the business, the level of coverage desired, the specific risks involved, and the insurer’s underwriting criteria. 

Onsurity offers cyber insurance policies starting at ₹50,000 per year, making it an affordable option for SMEs. HDFC ERGO offers the Cyber Sachet Insurance Plan at ₹2 per day, making it an affordable option for individuals and businesses. On the other hand Bajaj Allianz General Insurance offers cyber insurance policies starting at ₹1 lakh up to ₹1 crore, with premiums starting as low as ₹2 per day. 

Generally, cyber insurance premiums are influenced by the following factors: 

1. Size of the Business

Larger businesses with more extensive networks, higher revenue, and larger datasets typically face greater cyber risks and may pay higher premiums.

2. Industry Sector

Certain industries, such as finance, healthcare, and retail, are more prone to cyber threats due to the sensitivity of data they handle. Premiums may vary based on the sector’s perceived risk profile.

3. Cybersecurity Measures

Insurers often assess the cybersecurity measures and risk management practices implemented by a business. Organizations with robust cybersecurity protocols may qualify for lower premiums.

4. Coverage Limits

The extent of coverage desired by the business, including limits for first-party and third-party liabilities, can impact the premium cost. Higher coverage limits generally result in higher premiums.

5. Claims History

A business’s history of cyber incidents and insurance claims may influence the premium. Businesses with a track record of frequent or severe cyber incidents may face higher premiums.

6. Policy Specifics

The specific features and add-ons included in the cyber insurance policy, such as coverage for ransomware attacks, business interruption, regulatory fines, and crisis management services, can also impact the premium.

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Factors to Consider When Choosing the Right Cyber Insurance Provider 

When choosing the right cyber insurance provider, there are several key factors to consider. Some of these are as follows: 

1. Coverage Scope 

  • Evaluate the breadth and depth of the cyber insurance policy’s coverage. Look for policies that provide comprehensive protection against a wide range of cyber threats, including data breaches, cyber-attacks, business interruption, and regulatory fines. 
  • Ensure the policy covers both first-party (direct) and third-party (liability) losses. 

2. Limits and Deductibles 

  • Assess the policy’s coverage limits, which determine the maximum amount the insurer will pay for a covered claim. 
  • Consider the deductible, which is the amount the policyholder must pay before the insurance coverage kicks in. 
  • Ensure the limits and deductibles align with your organisation’s risk tolerance and potential exposure. 

3. Incident Response and Recovery Services 

  • Look for insurers that offer access to specialised incident response teams, legal counsel, and other post-breach services to help businesses quickly recover from a cyber incident. 
  • Evaluate the quality and availability of these services, as they can significantly impact the overall effectiveness of cyber insurance coverage. 

4. Reputation and Financial Stability 

  • Choose a reputable and financially stable insurance provider with a proven track record of paying claims promptly and fairly. 
  • Research the insurer’s financial strength ratings and customer satisfaction levels. 

5. Customisation and Flexibility 

  • Opt for a cyber insurance provider that offers customizable policies to meet your organization’s unique needs and risk profile. 
  • Look for insurers that provide the flexibility to adjust coverage limits, deductibles, and other policy terms as your business evolves. 

6. Risk Management and Prevention Services 

  • Consider insurers that offer value-added services, such as cybersecurity assessments, employee training, and risk mitigation guidance. 
  • These services can help strengthen your organization’s overall cybersecurity posture and potentially lower your insurance premiums. 

7. Pricing and Cost-Effectiveness: 

  • Compare the premiums and overall cost-effectiveness of the cyber insurance policies offered by different providers. 
  • Ensure the coverage and benefits provided justify the cost of the policy.

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Conclusion

In conclusion, while cyber insurance does come at a cost, the benefits of financial protection, risk management, regulatory compliance, and business continuity outweigh the initial investment for many businesses.

It’s important for businesses to carefully assess their cyber risks, understand their insurance needs, and work with reputable insurers to tailor a cyber insurance policy that aligns with their specific requirements and budget. By doing so, businesses can enhance their overall resilience to cyber threats and safeguard their long-term viability in an increasingly digital world.

FAQs:

1. What is a cyber insurance company?
A cyber insurance company is an insurance provider that specializes in offering insurance policies specifically designed to protect businesses and organizations against the financial losses and liabilities associated with cyber incidents. These companies develop and offer cyber insurance policies that help businesses mitigate risks related to data breaches, cyber-attacks, ransomware, business interruption due to cyber incidents, and other cyber threats.
2. How big is the cyber insurance market in India?
The cyber insurance market in India is valued at approximately USD 50-60 million, with a steady growth rate of 27-30 percent over the past three years. This growth is expected to continue for the next 3-5 years, driven by increasing awareness of the need for cyber insurance. The market is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 25.7 percent over the next seven years.
3. What is the scope of cyber insurance in India?
He scope of cyber insurance in India is evolving to encompass comprehensive coverage against a wide range of cyber risks, regulatory compliance support, risk management services, and industry-specific solutions. As businesses recognize the importance of protecting themselves against cyber threats, cyber insurance plays a crucial role in enhancing their resilience and financial security in an increasingly digital world.
4. What’s not covered in cyber insurance?
Cyber insurance policies typically provide coverage for a wide range of cyber risks and incidents, but there are certain exclusions and limitations that businesses should be aware of. Some of the risks not covered include war and terrorism acts, intentional acts, unapproved third-party actions, contractual liabilities, fines and penalties, loss of intellectual property, product defects or failures, social engineering fraud, criminal acts etc.
5. How does cyber insurance benefits small businesses?
Cyber insurance is a valuable risk management tool for small businesses, providing financial protection, regulatory compliance support, and resources to enhance cybersecurity resilience. By investing in cyber insurance, small businesses can safeguard their operations, protect their assets, and mitigate the potentially devastating impacts of cyber incidents on their business continuity and reputation. 
6. What is cyber security liability insurance?
Cyber security liability insurance is essential for businesses seeking financial protection and support in the event of a cyber incident. It helps businesses manage the costs of cyber risks, protect their assets, comply with regulatory requirements, and enhance their overall cybersecurity resilience. By investing in cyber liability insurance, businesses can mitigate the potentially devastating impacts of data breaches and cyber-attacks on their operations, reputation, and bottom line.
7. Which companies provide cyber insurance in India?
There are many companies that provide cyber insurance in India including names like Onsurity, HDFC Ergo General, Bharti Axa etc. Onsurity’s cyber insurance policy starts at just 50,000 annually and caters to cyber insurance for SMEs. Most of the other major players in the general insurance business like ICICI Lombard, Bajaj Allianz etc., also provide cyber insurance in India.  

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