Digital technologies are radically changing our lives, especially after the pandemic. As the world becomes increasingly interconnected and digital, a plethora of information is kept online on easily accessible applications, including social media passwords, bank details, location, identification certificates and other critical data. While this makes our life easier, it has also increased the instances of cyber breaches and threats. Emerging technologies such as AI, ML, IoT, etc. are steadily increasing in India. But the growing use of these technologies has highlighted the risk of cyber fraud.
According to the recent CERT-IN report, India has registered over 2.12 lakh cyber Security incidents through February 2022. This underscores the need for robust cybersecurity products and insurance coverage that can help individuals secure appropriate coverage for themselves as well as their immediate family members. Some of the common cyber risks include data leakage, connecting to unsecured Wi-Fi networks, phishing attempts, ransomware, spyware, and programs with poor encryption (also known as broken cryptography). There are several reasons why such incidents may occur, such as outdated systems failing to protect systems due to poor or insufficient cybersecurity protection, limited time to develop structured backend cybersecurity infrastructure , from a neglect to opt for virus protection or malware protection and the absolute lack of understanding the importance of securing machines. These factors also contribute to the risks and potential threats of cyberbullying.
There is an increased need for robust cybersecurity and protection as there is an increase in data consumption, combined with the increased use of smartphones and technology for transactions, which has increased the possibility of hacking and cyber fraud . The increase in the number of cyber breaches requires a strong regulatory framework to combat cybercrime. Government policies and an increased focus on data protection have closed some of the gaps and provided a solid framework to address these issues. However, there is a need to further strengthen efforts to combat cybercrime.
Over the years, insurers have spearheaded efforts to educate the masses about the cyber frauds happening around us and the role of cyber insurance in how they can protect themselves financially against cyber crimes. Keeping in mind the new age cybercrimes, today most insurers aim to offer a policy that includes coverage against funds and identity theft, unauthorized online transactions and theft. emails, among others. In a pervasive and aggressive cyber threat environment, insurers have an important role to play in enabling the transformation to the digital economy by continuing to raise awareness of cyber risk.
It is important to understand the different types of coverage available under cyber insurance. Below are some key covers available under the policy:
Theft of funds
- Theft of funds from bank account, credit or debit card or mobile wallets
- Consequences of being a victim of a cyber incident or hack
- Charges for lawsuits, theft of funds, or phishing or spoofing emails
- Wage loss
- Cost of Credit Monitoring and Identity Monitoring Services
- Cost of legal protection
- Cost of psychological assistance and treatment.
Data Recovery / Malware Decontamination
- Cost of an IT expert to restore data after a cyber incident or to decontaminate or clean the personal device from malware
Cyberbullying, Harassment and Loss of Reputation
- Financial protection for civil proceedings
- Cost of an expert to restore reputation loss caused
- Fees, costs and cost of psychological assistance and treatment
- Reimbursement of direct and pure financial losses due to internet transactions via payment card or mobile wallet.
social media and media accountability
- Covers legal costs to defend third-party claims where the insured’s social media history has caused breach of privacy or copyright violations
Disclaimer: The opinions expressed are those of the author alone and ETCIO.com does not necessarily endorse them. ETCIO.com will not be responsible for any damage caused to any person/organization directly or indirectly.