Indian banks are increasingly looking to cyber insurance to protect their businesses as threats continue to rise.
According to reports in The Indian Express
, major banks in the country are working on cyber insurance solutions as India pegged its losses to cyber crimes at US$4 billion in 2016.
The largest bank in the country, the State Bank of India (SBI), is now looking to sure up its cyber protection, for both its business and its customers, with an insurance policy.
“As we are now planning to take cyber covers for our customers, we have already asked one of the companies, which is on the bank’s panel of insurance advisers, to prepare a report for us in this direction,” SBI managing director, Rajnish Kumar, said, according to the report.
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Late last year, SBI fell victim to cyber fraud but it is not the only bank looking to the coverage.
P S Jayakumar, managing director of Bank of Baroda, also said that they are “definitely” moving towards cyber insurance when it is required for the bank. In a recent case of cyber fraud, Bank of Baroda saw 100,000 debit cards compromised.
As many as 20 state-owned lenders are in serious talks with insurers on cyber, which is pushing demand for the cover in the fledgling market.
“We are in talks with around 20 state-owned banks, which are seriously looking for cyber insurance cover. But no deal has been materialised so far,” Anand Rathi Insurance Brokers director Supriya Rathi said.
Aon and Marsh
join Anand Rathi as the active brokers in the cyber insurance market in India with commission on cyber cover for banks set to rise as high as 12.5% per policy, the report continued.
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