Irdai has no plans to bring standard products for cyber liability insurance policy as of now: Irdai member

Irdai member said Insurance Regulatory and Development Authority of India (Irdai) has no plans to bring standard products for cyber liability insurance policy as of now. However, the member said that guidances are given to the insurers to evaluate the risks associated with these kinds of products. A working group was formed by the regulator for examination of bringing standardisation of cyber liability insurance policy. Irdai issued a circular earlier this month for product structure for cyber insurance.

S N Rajeswari, Member, Irdai said ‘The working group interacted, they demonstrated amongst themselves and they also had consultations with the stakeholders. And they decided, at this juncture, we will not be advising to come out with the standardisation of the cyber liability insurance policy’. She said the decision has been taken considering the nuances of the cyber law and fast growing digital ecosystem, and the jurisdiction aspect is also involved as there are sanctions amongst the countries. So under the emergence of few risks, they decided it is not the correct time to come out with the standardisation, but of course instead of standardising, guidance can be given.

Rajeswari said ‘A guidance document has been released by Irdai earlier this month to enable the insurers to evaluate what are the new technologies that are forcing the cyber risks and identify what is the protection gap’. Even as cyber risk insurance products are available in the market, both for the commercial and for individuals, she said insurers can now identify the possible risks and the recommendations that can be implemented. She added ‘So the insurers can identify what are the protection gaps and they can accordingly make products as per the needs of the market’.

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