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Banks rush to buy cyber security cover as digital payments rise

This is despite the fact that the industry base for cyber insurance is currently as low as Rs 60 cr

Press Trust of India  |  Mumbai 

digital, wallet, cashless, transaction, online, digital, payment
.

At a time when cyber threats are on the rise for with increasing cashless transactions and effects of demonetisation, insurers see rise in demand for cyber and cyber liability insurance, in particular.

This is despite the fact that the industry base for cyber is currently as low as Rs 60 crore.

There are various cyber covers available in the country, but it is the cyber liability which is in maximum demand for the banks, say insurers.

Non-life insurers that provide cyber cover include New India, National, Lombard, Tata AIG, Ergo and Bajaj

Country's largest lender of (SBI), which fell victim to cyber frauds some time back, is now considering to protect its 30 crore customers.

"We have always seen maximum security in all our IT systems. We are now considering to avail cyber covers for our customers," Managing Director Rajnish Kumar told PTI here.

"We are actively examining the issue. The only thing that we have to ensure is that costs fit into our scheme," he added.

Recently, in one of the biggest ever breaches of financial data in the country, customers of 3.2 million debit cards belonging to different were hit by cyber frauds where their ATM details were compromised. Several victims even had reported unauthorised usage from locations in China.

The worst-hit card-issuing in the episode included SBI, Bank, Bank, YES and

either had to replace or asked users to change the security codes of as many customers. Even though didn't suffer any big financial losses due to the data compromise episode, still as a precautionary measure, it had blocked 6 lakh debit cards.

of Baroda, which had seen around 1 lakh of its debit cards being compromised in the recent episode, is also keen to go for such covers in future.

"We are here to ensure protection of our customers and hence we will definitely go for cyber cover as and when it was required for the bank," of Baroda MD & CEO PS Jayakumar said.

Insurers said they do see uptick in demand for cyber covers by

"We are in talks with quite a few to provide cyber cover to them," New chairman and managing director, G Srinivasan said without divulging any details.

"Cyber threat is on the rise in recent times for the and hence they must go for cyber cover," he added.

"We have also issued cyber cover to a few banks," National CMD, Sanath Kumar said, adding "even though we provide various types of cyber covers to banks, cyber liability is most in demand."

Bajaj General chief technical officer, Sasikumar Adidamu said that cyber has seen close to 20% rise at Bajaj in the current fiscal.

He also said that in line with rising incidents of cyber threats, the industry has seen a 10-15% uptake of cyber liability covers.

"Proper risk management requires that should ensure that not only their systems but also systems of vendors need to be checked as vendor systems can be used to gain access to the systems of banks," said Praveen Vashist, CEO, India, Middle East & Africa, Howden Broking Group.

Howden Broking Group is one of the international intermediaries that structures liability covers for various global and Indian companies.

"Barring some exceptions, PSU have not yet commenced buying cyber However after the recent issue, related to the hacking of debit cards in the country, PSU as well are beginning to ask questions and are exploring cyber policies," he said.

The average limits being purchased by most range from $10-20 million, which is clearly quite a low limit compared to the exposure that are faced with. US-listed Indian banks, on the other hand, purchase limits stands at $75-100 million.

"are exposed to a variety of cyber risks ranging primarily from the actual loss of money and securities, liability arising from loss of third party data, loss of business due to denial of service attacks, possible ransom payments due to ransomware attack, loss of key confidential data, risk of possible defacement of the website or mobile applications, siphoning of amounts straight from the source, ATM rollbacks and resultant costs like forensic costs, data restoration or recreation and the like," said AS Manoj, senior vice president, Aon Global Brokers, an intermediary that deals with cyber risks.

For that prioritise this risk, cyber proves to be quite comprehensive and cost-effective solution. The providers and the intermediaries have spearheaded awareness by holding initiatives, he said.

According to Bharti AXA General chief underwriting officer Parag Gupta, "in the last 2 years, this segment of the industry has been growing by about 50 per cent annually."

Of late, due to increasing cashless transactions and effects of demonetisation along with the increasing threat of cyber-attacks, the segment growth rate has gone up to around 100%. But the base is still small, around Rs 60 crore only, he added.

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Banks rush to buy cyber security cover as digital payments rise

This is despite the fact that the industry base for cyber insurance is currently as low as Rs 60 cr

This is despite the fact that the industry base for cyber insurance is currently as low as Rs 60 cr
At a time when cyber threats are on the rise for with increasing cashless transactions and effects of demonetisation, insurers see rise in demand for cyber and cyber liability insurance, in particular.

This is despite the fact that the industry base for cyber is currently as low as Rs 60 crore.

There are various cyber covers available in the country, but it is the cyber liability which is in maximum demand for the banks, say insurers.

Non-life insurers that provide cyber cover include New India, National, Lombard, Tata AIG, Ergo and Bajaj

Country's largest lender of (SBI), which fell victim to cyber frauds some time back, is now considering to protect its 30 crore customers.

"We have always seen maximum security in all our IT systems. We are now considering to avail cyber covers for our customers," Managing Director Rajnish Kumar told PTI here.

"We are actively examining the issue. The only thing that we have to ensure is that costs fit into our scheme," he added.

Recently, in one of the biggest ever breaches of financial data in the country, customers of 3.2 million debit cards belonging to different were hit by cyber frauds where their ATM details were compromised. Several victims even had reported unauthorised usage from locations in China.

The worst-hit card-issuing in the episode included SBI, Bank, Bank, YES and

either had to replace or asked users to change the security codes of as many customers. Even though didn't suffer any big financial losses due to the data compromise episode, still as a precautionary measure, it had blocked 6 lakh debit cards.

of Baroda, which had seen around 1 lakh of its debit cards being compromised in the recent episode, is also keen to go for such covers in future.

"We are here to ensure protection of our customers and hence we will definitely go for cyber cover as and when it was required for the bank," of Baroda MD & CEO PS Jayakumar said.

Insurers said they do see uptick in demand for cyber covers by

"We are in talks with quite a few to provide cyber cover to them," New chairman and managing director, G Srinivasan said without divulging any details.

"Cyber threat is on the rise in recent times for the and hence they must go for cyber cover," he added.

"We have also issued cyber cover to a few banks," National CMD, Sanath Kumar said, adding "even though we provide various types of cyber covers to banks, cyber liability is most in demand."

Bajaj General chief technical officer, Sasikumar Adidamu said that cyber has seen close to 20% rise at Bajaj in the current fiscal.

He also said that in line with rising incidents of cyber threats, the industry has seen a 10-15% uptake of cyber liability covers.

"Proper risk management requires that should ensure that not only their systems but also systems of vendors need to be checked as vendor systems can be used to gain access to the systems of banks," said Praveen Vashist, CEO, India, Middle East & Africa, Howden Broking Group.

Howden Broking Group is one of the international intermediaries that structures liability covers for various global and Indian companies.

"Barring some exceptions, PSU have not yet commenced buying cyber However after the recent issue, related to the hacking of debit cards in the country, PSU as well are beginning to ask questions and are exploring cyber policies," he said.

The average limits being purchased by most range from $10-20 million, which is clearly quite a low limit compared to the exposure that are faced with. US-listed Indian banks, on the other hand, purchase limits stands at $75-100 million.

"are exposed to a variety of cyber risks ranging primarily from the actual loss of money and securities, liability arising from loss of third party data, loss of business due to denial of service attacks, possible ransom payments due to ransomware attack, loss of key confidential data, risk of possible defacement of the website or mobile applications, siphoning of amounts straight from the source, ATM rollbacks and resultant costs like forensic costs, data restoration or recreation and the like," said AS Manoj, senior vice president, Aon Global Brokers, an intermediary that deals with cyber risks.

For that prioritise this risk, cyber proves to be quite comprehensive and cost-effective solution. The providers and the intermediaries have spearheaded awareness by holding initiatives, he said.

According to Bharti AXA General chief underwriting officer Parag Gupta, "in the last 2 years, this segment of the industry has been growing by about 50 per cent annually."

Of late, due to increasing cashless transactions and effects of demonetisation along with the increasing threat of cyber-attacks, the segment growth rate has gone up to around 100%. But the base is still small, around Rs 60 crore only, he added.
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Business Standard
177 22

Banks rush to buy cyber security cover as digital payments rise

This is despite the fact that the industry base for cyber insurance is currently as low as Rs 60 cr

At a time when cyber threats are on the rise for with increasing cashless transactions and effects of demonetisation, insurers see rise in demand for cyber and cyber liability insurance, in particular.

This is despite the fact that the industry base for cyber is currently as low as Rs 60 crore.

There are various cyber covers available in the country, but it is the cyber liability which is in maximum demand for the banks, say insurers.

Non-life insurers that provide cyber cover include New India, National, Lombard, Tata AIG, Ergo and Bajaj

Country's largest lender of (SBI), which fell victim to cyber frauds some time back, is now considering to protect its 30 crore customers.

"We have always seen maximum security in all our IT systems. We are now considering to avail cyber covers for our customers," Managing Director Rajnish Kumar told PTI here.

"We are actively examining the issue. The only thing that we have to ensure is that costs fit into our scheme," he added.

Recently, in one of the biggest ever breaches of financial data in the country, customers of 3.2 million debit cards belonging to different were hit by cyber frauds where their ATM details were compromised. Several victims even had reported unauthorised usage from locations in China.

The worst-hit card-issuing in the episode included SBI, Bank, Bank, YES and

either had to replace or asked users to change the security codes of as many customers. Even though didn't suffer any big financial losses due to the data compromise episode, still as a precautionary measure, it had blocked 6 lakh debit cards.

of Baroda, which had seen around 1 lakh of its debit cards being compromised in the recent episode, is also keen to go for such covers in future.

"We are here to ensure protection of our customers and hence we will definitely go for cyber cover as and when it was required for the bank," of Baroda MD & CEO PS Jayakumar said.

Insurers said they do see uptick in demand for cyber covers by

"We are in talks with quite a few to provide cyber cover to them," New chairman and managing director, G Srinivasan said without divulging any details.

"Cyber threat is on the rise in recent times for the and hence they must go for cyber cover," he added.

"We have also issued cyber cover to a few banks," National CMD, Sanath Kumar said, adding "even though we provide various types of cyber covers to banks, cyber liability is most in demand."

Bajaj General chief technical officer, Sasikumar Adidamu said that cyber has seen close to 20% rise at Bajaj in the current fiscal.

He also said that in line with rising incidents of cyber threats, the industry has seen a 10-15% uptake of cyber liability covers.

"Proper risk management requires that should ensure that not only their systems but also systems of vendors need to be checked as vendor systems can be used to gain access to the systems of banks," said Praveen Vashist, CEO, India, Middle East & Africa, Howden Broking Group.

Howden Broking Group is one of the international intermediaries that structures liability covers for various global and Indian companies.

"Barring some exceptions, PSU have not yet commenced buying cyber However after the recent issue, related to the hacking of debit cards in the country, PSU as well are beginning to ask questions and are exploring cyber policies," he said.

The average limits being purchased by most range from $10-20 million, which is clearly quite a low limit compared to the exposure that are faced with. US-listed Indian banks, on the other hand, purchase limits stands at $75-100 million.

"are exposed to a variety of cyber risks ranging primarily from the actual loss of money and securities, liability arising from loss of third party data, loss of business due to denial of service attacks, possible ransom payments due to ransomware attack, loss of key confidential data, risk of possible defacement of the website or mobile applications, siphoning of amounts straight from the source, ATM rollbacks and resultant costs like forensic costs, data restoration or recreation and the like," said AS Manoj, senior vice president, Aon Global Brokers, an intermediary that deals with cyber risks.

For that prioritise this risk, cyber proves to be quite comprehensive and cost-effective solution. The providers and the intermediaries have spearheaded awareness by holding initiatives, he said.

According to Bharti AXA General chief underwriting officer Parag Gupta, "in the last 2 years, this segment of the industry has been growing by about 50 per cent annually."

Of late, due to increasing cashless transactions and effects of demonetisation along with the increasing threat of cyber-attacks, the segment growth rate has gone up to around 100%. But the base is still small, around Rs 60 crore only, he added.

image
Business Standard
177 22