India: Demand for cyber cover to soar when data privacy law takes effect
Source: Asia Insurance Review | Oct 2018
India is likely to see 30% growth in cyber insurance policy sales, after the enactment of the personal data protection law.
A report by Global Insurance Brokers said the number of policies has seen a cumulative growth of 25% over the past four years, according to Moneycontrol. The strict obligations of the law will lead to the data liability cover being put to test, says the report.
It says compulsory notification requirements, privacy notices and authority assessment obligations will require entities to re-assess their cyber risk standing as well as tweak their cyber insurance.
The Ministry of Information and Technology released the Personal Data Protection Bill in July 2018. The draft covers matters like the right to privacy and sensitive personal data of Indian citizens.
Mr Manoj Kumar, senior vice president, liability head and Mumbai branch head at Global Insurance Brokers, said, “While the bill will take the natural course of time in terms of developing into an act, the present iteration of the bill largely showcases the intent and powers of the government with respect to privacy in India and imposing stiff obligations on Indian entities. The enactment of the bill would lead to a major impact on the existing cyber insurance ecosystem across the country.” A