The Insurance Regulatory and Development Authority of India on 8th September 2021 has published the guidance document on product structure for Cyber Insurance to improve the development of the cyber insurance market with new products and enhance benefits for policyholders.
The main objectives of the guidance document on product structure for Cyber Insurance are to enable insurers to evaluate new technologies posing heightened cyber risk, identify protection gaps in the existing products and address the changing needs of market and to facilitate insurers in developing stand-alone cyber insurance products, specifically designed to address the evolving cyber risks.
General insurers who have already developed some cyber insurance products with exclusive coverage for individuals to protect against cyber perils and currently offering the products that mainly focused on commercial business, may review the product structure based on the coverages advocated in the document. The filing of the such product/s may be undertaken at the earliest to respond to the needs of customers who are increasingly exposed to the cyber threat of digital services.
The general insurers can also expand the scope of cyber risks included in the traditional policies for the benefits of policyholders. However, the insurers may be mindful of overlapping coverages in cyber insurance policies and other types of insurance policies currently covering cyber risk with limited scope.
