Over eight in 10 (82%) of Indian organisations have cyber insurance, but less than half (48%) say that their cover is comprehensive.
This was revealed by a cybersecurity survey conducted by research and consultancy company Ovum for Silicon Valley analytics firm FICO.
According to the study, India places second among the 11 markets surveyed in terms of cyber insurance. It is just behind the UK, where 90% of organisations have cyber cover.
But despite the popularity of cyber insurance among Indian organisations, less than half of firms reported that their cyber insurance policy covers all risks, meaning that there is a significant level of risk taken by businesses in India.
“It's is very encouraging to see the high uptake of cybersecurity insurance across India,” said Vishal Goyal, country manager for India at FICO. “India has a well-developed IT sector and is on the front-foot with this issue. The data breaches in India in the past 12 months have continued to have an impact on local businesses, so there is recognition that insurance plays an important role in risk mitigation and is an important consideration to minimizing disruption.”
FICO asked respondents if they felt their insurance premiums were based on an assessment that accurately reflected their risk profile, 44% of firms said yes. Only 17% of firms said premiums were based on an inaccurate analysis, while 32% said they were based on industry averages and 7% on unknown factors.
Telecommunications firms are the most prepared for cyber risks, with 60% of firms reporting that their cover was sufficient for their risk exposure. This is significantly higher than the financial services sector, where 40% of firms had comprehensive coverage.
Cyber breaches are becoming larger and more expensive, the study said. This is supported by a 2017 study by the Ponemon Institute, which discovered that from 2016 to 2017, the average total cost of data breaches increased by 12.3%, while the size of breaches increased 6% and the loss of existing customers increased by 4.3%.