Sep 18, 2024
In today’s digitally interconnected world, our dependency on online transactions for personal and business purposes exposes us to increasing cyber threats. The digital boom was further accelerated by pandemic, which increased the cyber threats. According to a survey by Barracuda Networks, an IT security firm, over 66% of Indian businesses have suffered at least one data breach since March 2020. Cyber threats are evolving at a great pace, leaving traditional insurance and risk management strategies struggling to keep pace. This creates a definitive protection gap, particularly for small and medium-sized businesses (SMBs) who are often uninsured or underinsured.
According to Munich Re Cyber Risk and Insurance Survey 2024, the Ransomware payments hit a record-breaking USD1.1 billion in 2023, and attackers are employing increasingly sophisticated methods to break into systems, exploiting technological advancements, such as generative artificial intelligence (AI). The challenging cybersecurity environment is further exacerbated by intensifying geopolitical tensions as the digital domain has become a strategic environment for states or state-sponsored actors.
Some businesses have underestimated the importance of investing in robust cybersecurity, believing they can manage without it. This misconception has been fueled by budget constraints, and lack of understanding of the true value of protection, leaves companies to potential cyber-attacks. Furthermore, businesses have also struggled to navigate the intricacies of policies and grapple with the perceived cost, further delaying crucial security measures.
The insurance industry plays an essential role in helping businesses responsibly take risks in support of society’s growth, innovation, and overall well–being — risks that are generally predictable and manageable, as opposed to those that would potentially shock the global economy or significant portions thereof.
