These predictions for the Indian market were revealed this week at the Monte Carlo Reinsurance Rendezvous.
According to the figures that were released at the Monte Carlo Reinsurance Rendezvous, the market for cyber insurance could blossom to a hefty $7.5 billion in India as early as the end of 2020, if things continue as they have been.
This forecast, along with several other insurance predictions, was released by PricewaterhouseCoopers (PwC).
PwC also stated that by the end of 2018, the cyber liability insurance market will have risen to $5 billion in annual premiums. According to PwC director, Anuraag Sunder, “Cyber Insurance remains a looming risk with steep under penetration in India,” adding that “As ITES, retail, healthcare and related sectors grow cyber insurance for suitable customer data protection become crucial.”
The importance of cyber insurance in India has been very clear due to the high rates of data breach there.
Back in the 2010 to 2011 span of time, India had been in tenth place in terms of data breaches and cyber attacks, worldwide. However, by last year and the year before, it had already risen to second place, behind only the United States. General business insurance providers in the country do offer certain cyber liability insurance policies. According to anecdotal data cited by PwC in its report, there are around 150 different products being sold in India to provide this coverage.
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PwC insurance partner, Paul Delbridge, also pointed out that “Insurers also need to continue to invest appropriately in their own cyber security – a business which can’t protect itself can’t expect policyholders to trust them to protect and advise them.” He explained that when taking into consideration the massive amount of sensitive information that is being collected and stored by the financial, medical, and other industries, “it is crucial” that insurance companies maintain a solid framework for cyber security.
The popularity of this type of coverage has also been rising in countries throughout the world. The critical nature of cyber insurance has become increasingly evident as the number of high profile data breaches continues to increase around the globe.