Insurers conduct surveys prior to selling the policy, in order to understand the IT policies of a company or bank. They also try to ascertain the track-record of cyber-incidents at the company and the steps taken when a breach takes place.
“The problem is that we don’t have a formal data mechanism on incidents, so we worked closely on the pricing with a re-insurer that has had experience with these type of policies in the Asian market,” said Vaidyanathan B, Underwriting Manager, SBI General Insurance Company Pvt Ltd.
SBI General Insurance Company Pvt Ltd is currently working on building the back-end infrastructure to support its cyber-insurance policy with a full-fledged facility for incident management and forensics, he said. The company recently filed for approval of their cyber-insurance policy with the insurance regulator and hopes to launch their product by mid-March.
Queries sent to New India Assurance and Future Generali General Insurance did not elicit a response. Executives from HDFC Ergo General Insurance could not be reached for a comment.
Cautious Insurers
Given the lack of predictability, insurers are being extra-cautious to ensure claims are legitimate, even if…
