Despite cyber risk concerns within India's organizations, only 21 percent of companies indicated they currently purchase stand-alone cyber liability insurance, according to a survey conducted by Marsh India Insurance Brokers Pvt Ltd (Marsh India).
The low take-up rate of this insurance could be related to lack of awareness, with 55 percent indicating they are not familiar with cyber insurance.
“These results demonstrate a concerning low level of understanding within the Indian risk and insurance professional community, which is exactly why Marsh hosted this Digital Threats event," said Marsh India CEO, Sanjay Kedia.
Kedia notes that the reliance on technology, systems, and web platforms in today’s business environment means companies cannot afford to treat cyber security as a peripheral consideration that can be outsourced or left to the responsibility of the company’s IT department.
“This issue needs to be led by the board, with accountability throughout all levels of the organisation, and a holistic strategy that nurtures awareness and a firm grasp of exposures, dependencies, and liabilities,” added Kedia.
The survey of more than 150 risk and insurance professionals from a wide range of industries, found that risk managers are concerned about the perceived threat of cyber attacks on their organizations, with 55 percent naming the risk as a “top concern” for their organization, with 44 percent indicating concerns have increased significantly over the past 12 months.
However, despite a majority of of risk managers considering cyber attacks a top concern, a majority also are unaware of whether or not their organization has been a victim of cyber attacks in the past three years.
Asked to identify the top worry stemming from a cyber attack or data breach, 43 percent said that reputation damage was their main concern, followed by financial loss (30 percent), lawsuits (16 percent), and regulatory action or loss of license (9 percent).