The Insurance Regulatory and Development Authority of India (IRDAI) has recently published the guidance document on product structure for Cyber Insurance to improve the development of the cyber insurance market with new products and enhance benefits for policyholders. The guidance will enable insurers to assess new technologies posing increased cyber risk, identify protection gaps in existing products and respond to changing customer needs.
General insurers who have already developed some cyber insurance products with exclusive coverage for individuals to protect against cyber perils and currently offering the products that mainly focused on commercial business, may review the product structure based on the coverages advocated in the document. The filing of the such product/s may be undertaken at the earliest to respond to the needs of customers who are increasingly exposed to the cyber threat of digital services.
Currently, general insurance companies offer cyber insurance products with exclusive coverage for individuals to protect against cyber risks. The policies cover first party losses such as direct financial losses, data recovery and regulatory actions.