authors
Jyotirmoy Koley

abstract
The cyber insurance market in India is rapidly evolving, propelled by increasing digitalization and the escalating frequency and sophistication of cyber threats. Nevertheless, this emerging market faces substantial challenges that impede its growth and efficacy. This study aims to provide a comprehensive overview of the cyber insurance landscape in India, examining its evolution, current market dynamics, and prospective trends. This research employs a descriptive and analytical methodology, deriving insights from secondary data sources such as regulatory circulars, industry reports, academic literature, and news articles. The findings indicate that a lack of awareness and understanding among businesses, complexities in pricing and underwriting, non-standardized policies, and the dynamic nature of cyber risks constitute major impediments to the adoption of cyber insurance in India. This study further underscores the pivotal role of the Insurance Regulatory and Development Authority of India (IRDAI) in shaping the regulatory framework and its interaction with data privacy laws. Additionally, the study identifies key market growth drivers, including the rising costs of cybercrime, technological advancements, and the competitive advantage of insurers with cyber risk expertise. The current market landscape is characterized by the prevalence of standalone cyber policies and silent cyber or add-on covers, with standard coverage features encompassing first-party costs and third-party liabilities. Case studies of a ransomware attack on an Indian manufacturing SME and a data breach at an Indian FinTech startup provide practical insights into the role of cyber insurance in mitigating financial losses and supporting recovery efforts. This study also explores future trends, such as product innovation, increased partnerships between insurers and cybersecurity firms, and the integration of artificial intelligence into underwriting processes. Based on these findings, this study offers recommendations for stakeholders, including regulators, insurers, and businesses, to collaboratively address the challenges and foster a robust cyber insurance market in India. As cyber risks continue to evolve, the development of a comprehensive and adaptive cyber insurance ecosystem will be crucial in strengthening the resilience of Indian organizations against potential threats.