Cyber Insurance

Cyber Insurance in India: A Critical Risk Mitigation Strategy

- Dr. Jyothi G. H.

Abstract

India's rapid digital transformation, driven by increasing internet penetration, digital payments, and government-led initiatives like Digital India, has significantly expanded its cyber threat landscape. Cyber-attacks such as data breaches, ransom ware, phishing, and denial-of-service incidents are rising sharply, targeting sectors including finance, healthcare, critical infrastructure, and small businesses. In response to this escalating threat, cyber insurance has emerged as a strategic risk transfer mechanism, enabling organizations to manage financial losses associated with cyber incidents. This study aims to critically assess the relevance and effectiveness of cyber insurance within the Indian cyber security ecosystem. By examining the gaps between cyber risk exposure and insurance preparedness, this paper offers insights into the strategic role cyber insurance can play in enhancing national cyber resilience.

Introduction

In today's digital world, organizations face growing risks from cyber threats like ransom ware, data breaches, and phishing attacks. These incidents can lead to heavy financial losses, legal trouble, and damage to reputation. With India's rapid digital growth driven by initiatives like Digital India, UPI, fintech expansion, and online banking the country has become more exposed to cyber threats. To deal with these challenges, cyber insurance has emerged as an important tool. It helps organizations recover by covering the costs of cyber incidents such as system repairs, data recovery, business interruption, and legal expenses.