Cyber Threats Are Rising: Navigating India’s Expanding Cyber Insurance Market

Understanding Cyber Threats and Cybersecurity Needs

Cyber threats are escalating daily in India, affecting both government and private sectors. Notable incidents, including the ransomware attack on AIIMS, highlight the urgent need for enhanced cybersecurity measures.

Budget and Government Initiatives

In response, the Indian government has significantly increased its cybersecurity budget from Rs 400 crore in 2023-2024 to Rs 759 crore in 2024-2025. This increase underscores the pressing need for robust cyber protections managed by MeitY.

Statistics and Cyber Incident Reports

The Indian Computer Emergency Response Team (CERT-In) reported over 1.39 million cyber incidents in 2022, revealing the scale of vulnerabilities in the nation.

Growth of Cyber Insurance in India

With the rise in cyber threats, cyber insurance is transforming from a niche to a necessity for both individuals and businesses. Deloitte estimates that India's cyber insurance industry will grow at 27 to 30 percent annually, with a market value projected between $50 to $60 million.

Innovative Insurance Solutions

• HDFC ERGO: Cyber Sachet Insurance Plan
• Bajaj Allianz: Cyber Insurance Policy
• Tata AIG: CyberShield and Cyber Risk Protector

Many of these products are affordable, with some plans starting as low as Rs 3 per day, driven by rising AI-related fraud risks.

Regulatory Changes and Future Outlook

The regulatory environment is adapting swiftly. SEBI is now requiring all registered entities to establish Security Operations Centres, while the Digital Personal Data Protection Act strengthens the legal obligations around data privacy.

The Path Ahead for Cyber Insurance

With digital transactions on the rise, the need for comprehensive cybersecurity measures grows increasingly vital. According to industry experts, the demand for cyber insurance is expected to keep surging in the face of advanced cyber threats.