WannaCry Impact to be nullified with the help of Cyber Insurance Policies

May 2017

The panic mode of companies across the globe inducing India is on due to the attack WannaCry ransomware. But this mode could have been switched off with minimal financial loss with only one step, opting for cyber liability insurance. Approximately, 200-300 policies have been sold and maximum number of companies which opted for these policies are from IT or fintech sector. WannaCry ransomware has spread across some of the Indian states. It carries out encryption of the computer along with demanding payment for restoration of service. Moreover, it also possesses capability to use data from one computer and affect multiple devices along with possibility of stealing data.

Sanjay Datta, chief of underwriting, claims, and reinsurance of ICICI Lombard General Insurance stated that this ransomware could pose a hazardous threats though India's exposure has been less than the rest of the world till now. He also outlined the possibility of a spillover. He added, “The coverage of cyber liability is not yet widespread and primarily whoever has taken it are primarily financial institutions and that is where the risk is. Other institutions like hospitals have not taken it. After this incident, we hope that sale of this product should pick up.”

Trend Micro, a global cybersecurity solutions firm reported that WannaCry ransomware is able to target and encrypt around 176 file types. The company is doing everything in its capacity to negate the effect. Sharda Tickoo, Technical Head at Trend Micro, India said, “Primarily the regions that have been attacked by the ransomware ‘WannaCry’ include UK, Europe and the APAC region, which include India as well.” She added that customers are calling the company just to confirm if all the controls are in place. She also reported that there have been negligible number of case filed.

Cyber insurance covers sold in India range from Rs.15 crore to more; however, premium ranges from Rs. 15 lakh to Rs. 1 crore on the basis of the risks involved and size of the cover. Sasikumar Adidamu, Chief Technical Officer of Non-Motor Insurance, Bajaj Allianz General Insurance, outlined that a cyber insurance policy will cover the expenses involved in informing individuals about data breach taken place due to attack of Wannacry Ransomware. This excludes the liability taking place out of any lawsuit filed by customers for the purpose of data leakage.

In its recent report on the global cyber insurance market, Research Beam offers an extensive analysis of key segments, current market status, geographical regions, and major market players. Moreover, recent developments, business overview, and outlook toward future are covered in the research to help market players, investors, and stakeholders gain thorough understanding of market conditions and devise strategies for growth.

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