Cyber risks: Irdai issues cyber insurance product norms

In order to facilitate insurers in developing standalone cyber insurance products, the insurance regulator has issued a guidance document on product structure for cyber insurance. The guidance will enable insurers to evaluate new technologies posing heightened cyber risk, identify protection gaps in existing products and address the changing needs of customers.

In fact, a working group set up by Insurance Regulatory and Development Authority of India (Irdai) has concluded that standardisation of policy wording for cyber insurance is not desirable because of the evolving nature of legislative frameworks in dealing with cyber risk, fast growing digital ecosystem, increasing interconnectedness globally and complexity of IT systems and emergence of new risks.