Cyber insurance

Recent data released has highlighted that small businesses and start-ups in India are dependent on digital technology which makes them vulnerable to cyber threats.

• Thus, there is a need for Cyber Insurance.

Internet Inclusion in India:

• According to the committee report, the number of internet users in India is currently estimated at 700 million.
• India was ranked as the second-largest online market worldwide in 2019, coming second only to China.
• The number of internet users is estimated to increase in both urban as well as rural regions. This number is increasing rapidly so also is the number of users of online banking.

What is Cyber Insurance?

• Increasing digital presence is also responsible for increasing cases of cybercrimes and data threats.
• It possesses multiple threats like data and security breaches, cyber-attack, intellectual property losses, cyber safety hazards, financial frauds etc.
• Therefore, to mitigate such risks, start-ups, and small businesses should purchase a cyber-insurance policy that has become more of a necessity than a choice.

Insurance aims to cover:

• Theft of Funds, Identity Theft Cover, Social Media Cover, Cyber Stalking, Malware Cover, phishing cover, Data Breach and Privacy Breach Cover, etc.

What is not covered?

• Cyber insurance excludes violations of contracts, breaches of trade secrets and trademarks, and disputes over registered patents or intellectual property.

Why is it essential?

• Losses to small businesses: Data suggest that about 43% of all cyber-attacks targeted small businesses and start-ups. Thus it is important for them to be equipped with cyber insurance policies.
• The policy secures the company from repercussions of being the potential victim of a cyber-crisis that may cause financial and data loss and harms its reputation.

Government Initiatives to Tackle cyber-attacks:

• Cyber Surakshit Bharat Initiative: It was launched in 2018 with an aim to spread awareness about cybercrime and build capacity for safety measures for Chief Information Security Officers (CISOs) and frontline IT staff across all government departments.
• National Cybersecurity Coordination Centre (NCCC): Its mandate is to scan internet traffic and communication metadata (which are little snippets of information hidden inside each communication) coming into the country to detect real-time cyber threats.
• Cyber Swachhta Kendra: In 2017, this platform was introduced for internet users to clean their computers and devices by wiping out viruses and malware.
• National Computer Emergency Response Team (CERT-In) functions as the nodal agency for the coordination of all cyber security efforts, emergency responses, and crisis management.
• Information Technology Act, 2000: The Act regulates the use of computers, computer systems, computer networks and also data and information in electronic format.