In India, almost all cyber insurance customers are renewing their policies as a result of the increased awareness of cyber threats. Regulatory compliance and growing cyberthreats have been the main drivers for 100% renewal rate with an annual turnover of more than ₹10 crore. The cyber insurance market has grown dramatically in the last two years.
35% to 40% of cyber insurance policyholders are in the Banking, Financial Services, and Insurance (BFSI) sector, with 30% coming from the IT and technology sector. As businesses in the IT and BFSI sectors are increasingly demanding that partners and vendors have cyber insurance as part of contracts.
The Startups make up 25% of adopters, and healthcare & logistics hold 5% share each.
Most importantly, 30% to 35% of cyber insurance customers are first-time purchases, indicating a trend toward proactive cyber risk management. Many startups and mid-sized businesses that once undervalued cyber risks are now realizing the operational and financial consequences of hacks.
Data breach-related business interruption is the primary reason for compensation, accounting for 45% of cyber insurance claims. Whereas, Ransomware occurrences account for 20% of claims, social engineering attacks for 25%, and other reasons for 10%.