Chennai: India is second, behind the UK when it comes to firms adopting cybersecurity insurance, a report has stated. However, the number of firms reporting comprehensive coverage sits at about half (48 per cent) showing there is still a level of risk taken by business in India, it stated.
The second annual cybersecurity survey from research and consultancy firm Ovum, for Silicon Valley analytics firm FICO, came up with the above data. Around 11 countries were surveyed for the study.
“It’s is very encouraging to see the high uptake of cybersecurity insurance across India,” said country manager for India at FICO, Vishal Goyal. “India has a well-developed IT sector and is on the front-foot with this issue. The data breaches in India in the past 12 months have continued to have an impact on local businesses, so there is recognition that insurance plays an important role in risk mitigation and is an important consideration to minimizing disruption.”
Last year, a study by the Ponemon Institute investigated the cost of data breaches to Indian companies and discovered that in 2017 the average total cost increased 12.3 per cent, the size of breaches increased six per cent and the loss of existing customers increased by 4.3 per cent.
The study stated that respondents were asked if they felt their insurance premiums were based on an assessment that accurately reflected their risk profile, 44 per cent of firms said yes. Only 17 per cent said firms said premiums were based on an inaccurate analysis, 32 per cent said they were based on industry averages and seven per cent on unknown factors.
Indian telecommunications firms were the most likely to have cybersecurity insurance – 80 per cent had insurance while 60 per cent reported it as comprehensive to their level of risk. This compares well to financial services, where 40 per cent of firms have comprehensive coverage.
“Indian companies are clearly leading the way when it comes to the take-up of cyber-insurance, with almost half having a comprehensive policy and a further one-third with at least some cover,” said Maxine Holt, research director at Ovum.
“Around two-thirds of surveyed organizations in India either use software to give a breach likelihood score, or use an external agency to carry out risk assessments.”
Ovum conducted the survey for FICO in businesses from India, the UK, the US, Canada, Brazil, Mexico, Germany, Finland, Norway, Sweden and South Africa. Respondents represented firms in financial services, telecommunications, retail and ecommerce, and power and utilities.