India: Proposal for compulsory cyber insurance for banks
Source: Asia Insurance Review | Nov 2019
Cyber is a big risk in India and most companies are under-prepared for this threat.
“All banks are highly dependent on technology. The size of the policy is very critical. We believe that the banking regulator can consider having a compulsory cyber risk policy for all the banks. Globally, crime and fraud is one of the biggest risks that is transferred by banks to insurance companies,” Marsh India Insurance Brokers CEO Sanjay Kedia told Hindu Business Line.
Marsh has carried out a study in partnership with RIMS. The findings reveal that the main risks are cyber, natural calamities, risk faced by the economy from oil price shocks and failure of financial institutions and banks.
He said that private sector banks are ahead in terms of acquiring the appropriate cyber insurance policy, but they can do better by having better coverage and limits.
Several public sector banks have also purchased cyber insurance, but the coverage and limits are still small.
Large and mid-sized banks should have anywhere between INR2bn ($28m) to INR15bn as crime and cyber cover, he said. A