Insurance Regulatory and Development Authority of India (Irdai) has no plans to bring standard products for cyber liability insurance policy as of now, a senior Irdai member said.
However, the member said that guidance is given to insurers to evaluate the risks associated with these kinds of products. A working group was formed by the regulator for examination of bringing standardization of cyber liability insurance policy. Irdai issued a circular earlier this month for product structure for cyber insurance.
S N Rajeswari, Member, Irdai said the following in a webinar. “The working group interacted, they demonstrated amongst themselves and they also had consultations with the stakeholders. And they decided, at this juncture, we will not be advising to come out with the standardization of the cyber liability insurance policy.”
Moreover, she said the decision has been taken considering the nuances of the cyber law and fast-growing digital ecosystem. In addition, the jurisdiction aspect is also involved as there are sanctions amongst the countries. She further said the following. “So under the emergence of few risks, they decided it is not the correct time to come out with the standardization, but of course instead of standardizing, guidance can be given.”
Even as cyber risk insurance products are available in the market, both for the commercial and for individuals. Furthermore, she said insurers can now identify the possible risks and the recommendations that can be implemented.
“Insurers can identify what are the protection gaps and can accordingly make products as per needs of the market.”