Businesses Have A 100 Per Cent Cyberinsurance Renewal. Do You Need Cyberinsurance As An Individual

Cyber insurance policy renewal rate now stands at a whopping 100 per cent, according to a recent study by Policybazaar for Business. Nearly 100 per cent of cyber insurance clients are renewing their policies. Businesses now recognise the recurring and evolving nature of cyber risks, leading to regular policy renewals. Cyber insurance is no longer seen as an optional risk-transfer tool but as a core component of enterprise risk management. 

Says Evaa Saiwal, head of liability insurance at Policybazaar For Business: "The cyber insurance market has evolved from a niche offering to a business necessity in the last couple of years. This demand has been fueled by increasing cyber threats and regulatory compliance. It’s poised for sustained growth, not just among large businesses but also among SMEs and emerging industries.”  

At a time like this, do you need cyber Insurance as an individual? Let’s find out: 

According to experts, individual cyber insurance offers complete security against various cyber threats, such as identity theft, online fraud, and data breaches. The policy covers financial damages as a result of illegal transactions, similar to those brought on by phishing scams, email spoofing, and scam calls.  

Moreover, the policy addresses cyber extortion threats, where hackers convey imminent and credible threats to publish personal information online unless a ransom is paid, thereby protecting against reputational harm. Additionally, the policy also covers instances of cyberbullying, including the cost of cyber services, and, if required temporary relocation. 

The coverage additionally covers legal obligations that may result from online activity, such as defamation or privacy violations, and guarantees protection against costs associated with computer system repair after cyberattacks.

Individual Cyber Insurance Policies Versus Cybersecurity Protections Offered By Banks, Credit Card Companies, Or Digital Platforms

Banks and online platforms each have their own security mechanisms—such as fraud detection and customer protection against unauthorized transactions—but often with limited coverage.

With a personal cyber insurance policy, however, you get more coverage. It stops at financial fraud alone, it can also assist in recovery from identity theft, coping with emotional distress from cyberbullying, and even covering the costs of legal assistance or data recovery.

Consider It This Way: Your bank might assist you in some fraud against your credit card. Cyber insurance, however, considers your whole digital existence from your social media accounts to your email accounts, online purchases, and so on.

“Personal cyber insurance is a safety net that can save policyholders from financial and reputational damage. While various financial institutions are designed to provide support and protection against financial fraud, personal cyber insurance policies go beyond financial protection, addressing reputation, legal, compliance, and other challenges arising from cyber incidents. These policies even support recovery efforts by providing coverage for costs of data restoration, forensic investigation, and legal counsel,” says Najm Bilgrami, senior VP & national head- financial lines, TATA AIG General Insurance. 

Factors Influencing The Cost Of Personal Cyber Insurance, And What Are The Typical Coverage Limits

The premium of personal cyber insurance varies based on a few factors:

Coverage Amount: The higher the coverage, the higher the premium.

Your Online Activity: “If you shop online a lot, use public Wi-Fi, or have a large digital presence, your premium could be a bit higher,” says Kunal Varma, CEO and co-founder, Freo. 

Family Coverage: If you have to cover your whole family, even children or elderly parents, the premium will be higher.

Add-Ons: Certain policies allow you to include add-ons such as legal fees or ransomware protection, which will drive the cost higher.

“Premiums usually start from at least Rs 500–Rs 2,000 annually, and the coverage amounts vary between different insurers and policies from Rs 1 lakh to Rs 1 crore,” adds Varma. 

Specific Risks Of Personal Cyber Insurance Policy Cover For Individuals

Individual cyber insurance offers complete security against various cyber threats, such as identity theft, online fraud, and data breaches. The policy covers financial damages as a result of illegal transactions, similar to those brought on by phishing scams, email spoofing, and scam calls.  

“Furthermore, the policy also addresses cyber extortion threats, where hackers convey imminent and credible threats to publish personal information online unless a ransom is paid, thereby protecting against reputational harm. Additionally, the policy also covers instances of cyberbullying, including the cost of cyber services, and, if required temporary relocation,” says Bilgrami. 

The coverage additionally covers legal obligations that may result from online activity, such as defamation or privacy violations, and guarantees protection against costs associated with computer system repair after cyberattacks.

Preventive Measures For Policyholders: Yes, the majority of insurers require you to take simple precautions to remain safe. These may be:

• Using robust passwords and regularly changing them

• Activating multi-factor authentication (MFA) where available

• Installing antivirus and keeping your software up to date

• Not opening suspicious links or downloads

• Quickly reporting incidents to the insurer and local police

Consider these your front line of defence. The insurance is in place as a backup, but you still need to lock your virtual doors, so to speak.