The Insurance Regulatory and Development Authority of India has released product structure for cyber insurance vide circular dated September 8, 2021. The guidance aims to provide the following:
- Enabling insurers to evaluate new technologies posing heightened cyber risk, identify protection gaps in the existing products.
- Facilitating insurers in developing stand-alone cyber insurance products for combating cyber risks.
- Providing a set of recommendations on maximum possible coverages that could be included in the cyber insurance products.
- Encouraging insurers to adopt best practices and provide additional covers in response to customer needs.
- Improving the development of the cyber insurance market with new products and enhance benefits for policyholders.
General insurers may review the product structure based on the coverage advocated in the guidance, who have already developed some cyber insurance products with exclusive coverage for individuals to protect against cyber threats and at present offering the products that focuses on commercial business.
*Tanvi Singh, Editorial Assistant has reported this brief.