There are no plans to bring standard products for cyber liability insurance policy at this time: Irdai member

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The Insurance Regulatory and Development Authority of India (Irdai) has no plans to bring standard products for cyber liability insurance policy at present, a senior member of the board said on Thursday. ‘Irdai. However, the member mentioned that directives are given to insurers to assess the risks associated with this type of product.

A working group has been formed by the regulator to review the standardization of the cyber liability insurance policy. Irdai issued a circular earlier this month for product structure for cyber insurance.

“The task force interacted, they protested among themselves and they also had consultations with stakeholders. And they decided, at this stage, that we would not advise to go out with the standardization of the insurance policy cyber liability,” SN Rajeswari, member, Irdai said in a webinar.

She said the decision was taken considering the nuances of cyber law and the fast-growing digital ecosystem, and the aspect of jurisdiction is also involved as there are sanctions between countries.

“So in the face of a few risks emerging, they decided it was not the right time to come out with normalization, but of course, instead of normalizing, advice can be given.

“A guidance document was released by Irdai earlier this month to enable insurers to assess what new technologies are forcing cyber risks and identify what the protection gap is,” Rajeswari said during of the ‘National E-Summit on Cyber ​​Insurance – Reinvigorating the Future for Bridging The Gap’, organized by industry body Assocham.

Even though cyber risk insurance products are available in the market, both for businesses and individuals, she said insurers can now identify possible risks and recommendations that can be implemented.

“This way, insurers can identify what the gaps in protection are and they can manufacture products according to market needs accordingly,” she added.

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