The growing need for cyber security insurance in BFSI sector

New regulations, emphasis on data protection and increasing cyber-attacks are driving banks and financial institutions to seriously look at cyber security insurance as the ‘plan B’ when an attack strikes. Sushant Sarin, Executive Vice President & Head, Commercial Lines & Reinsurance, Tata AIG General Insurance, throws light on why cyber security insurance is gaining traction and how his team is building the right portfolios for businesses. Q: As one of the first insurance companies to launch cyber liability cover in 2014, do you find the market maturing? What has been your experience with the product uptake? Sarin: The market for Cyber Insurance has matured, particularly over the last 2 years. By maturity I mean that there is heightened awareness of Cyber risk and everyone is educated about Cyber Insurance being the Plan B when Cyber risk strikes. From Tata AIG’s perspective, we have seen a 42 per cent rise in the count of cyber insurance policies this year from last year, with a 27 per cent rise in the written premium volume. That’s a significant growth for any market segment.