A working group was constituted by the regulator to examine bringing about standardization of cyber liability insurance policies. IRDA had earlier this month issued a circular on product infrastructure for cyber insurance.
“The working group interacted, they performed amongst themselves and they also consulted with the stakeholders. And they decided, at this point of time, we would not recommend coming out with standardization of cyber liability insurance policy,” said SN Rajeshwari, Member , Irda said in a webinar.
He added that the decision has been taken keeping in mind the specifics of cyber law and the rapidly growing digital ecosystem, and includes the jurisdictional aspect as there are restrictions between countries.
“So under the emergence of certain risks, they decided that this is not the right time to come up with standardization, but certainly instead of standardization, guidance can be given.
Speaking at the ‘National e-Summit’, Rajeshwari said, “A guidance document has been issued by IRDA earlier this month so that insurers can evaluate what are the new technologies for cyber risk and what are the security gaps ” Cyber Insurance organized by industry body ASSOCHAM – Reinventing the future to bridge the gap.
as cyber risk insurance products There are markets available, both commercial and for individuals, she said, adding that insurers can now identify potential risks and recommendations that can be implemented.
“So insurers can identify what the protection gaps are and they can accordingly tailor products to market needs,” she said.