Article in DNA

Sun, 19 Feb 2017-10:10am , PTI

But no deal has been materialised so far," Anand Rathi Insurance Brokers Director Supriya Rathi said.

"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.

"We are looking for completing the cyber insurance deal at around Rs 20-25 crore by the next fiscal year and Rs 50 crore within next couple of years," she added.

Apart from Anand Rathi Insurance Brokers, Aon Global and Marsh are the two insurance brokers which are also active on the space in the domestic market.

The insurance brokerage charge for cyber cover for banks may go as high as up to 12.5 per cent of the premium underwritten.

Surprisingly, the industry base for cyber insurance in the country is currently at Rs 60 crore only. Non-life insurers that provide cyber insurance cover include New India Assurance, National Insurance, ICICI Lombard, Tata AIG, HDFC Ergo and Bajaj Allianz.

Notably, between September and October last year, the domestic banks faced their worst breaches of financial data, as 3.2 million debit card customers of leading banks were hit by data theft where their debit card details were compromised.

Several victims had even reported unauthorised use of their card from far away locations in China.

The worst-hit banks were SBI, HDFC Bank, ICICI Bank, Yes Bank and Axis Bank, which originated with data theft from Yes Bank machines.

Banks either had to replace or ask users to change the security codes of many customers. Even though SBI didn't suffer any big financial losses due to the data compromise episode, still as a precautionary measure, it had blocked 6 lakh debit cards.

Some of the features covered by cyber insurance include data loss, business interruption due to data loss, notification cost, regulatory penalties, forensic investigation and audit costs.

Globally there are three main reinsurers active on the space for cyber insurance - AIG, Chubb and Lloyd's.