Why cyber insurance is a lifeline for enterprises

While some businesses still believe they’re too small to be hacked,” Tata AIG’s Najm Bilgrami politely disagrees. The company has redefined the sector with its latest product, CyberEdge, which not only insures against cyber risks but also offers a comprehensive ecosystem of prevention, response, and risk improvement services.

- Aanchal Ghatak

Najm Bilgrami, Senior VP & National Head, Financial Lines at Tata AIG, delves into the transformative journey, evolving challenges, and the impact of cutting-edge solutions on businesses navigating an increasingly perilous digital landscape.

Can you provide an overview of the growth trajectory of Tata AIG's commercial lines of business over the past few years?

I'd like to focus on the liability line of business, particularly cyber insurance. Tata AIG was the first to introduce cyber insurance in the Indian market in 2014. Now, after a decade, we're launching a new product with significant enhancements to address the evolving nature of cyber risks.

Cyber risks fall under the liability line of business, which addresses new-age risks. This includes policies such as Directors and Officers Liability, Professional Indemnity (also known as Errors and Omissions), and Employment Practices Liability. These products address issues like discrimination, retaliation claims, and the impact of movements like #MeToo.

Cyber risks are dynamic and have become a major concern globally. Reports like Allianz's Barometer and PwC's Risk Manager Survey highlight cyber as the largest emerging risk, surpassing traditional risks like natural disasters, terrorism, and inflation. Insurers, reinsurers, and risk managers agree that cyber exposure now poses the greatest threat to organizations.

How has Tata AIG innovated in cyber insurance?

Beyond indemnification, we focus on risk mitigation and improvement. Our new product offers a comprehensive ecosystem of pre-placement, post-placement, and incident response services. A key feature is the "First Response Cost Cover," tailored for small and medium enterprises (SMEs).

This cover includes:

• 24/7 hotline access during emergencies.

• Partnerships with Norton Rose and Indian law firms for legal assistance.