Hyderabad: The belief that IT companies are fully secure and there can be no breaches in their systems as well as lack of awareness about insurance cover and limited number of players in the sector are some of the reasons why risk protection cover is unable to penetrate the Indian market.
Besides, IT firms have the back up system to save and store the data separately on a regular basis. Hence they feel that spending additional bucks on insurance is not warranted. According to S. Jayaram, executive director of a city-based software firm, mindset of IT firms is slowly changing and it will take some time before insurance becomes a part and parcel of their regular affairs. Cyber risk management should be at the heart of strategic decision-making process, he added.
“Cyber security insurance has become the need of the hour for companies just like vehicle and health insurances. It will help the IT firms meet any unforeseen incidents like data theft and cyber attacks,” he said.
Cyber security expert GB Shaikh said that cyber insurance is evolving in the country and the Insurance Regulatory Development Authority (IRDA) has given the permission to a few insurance companies to start the insurance business in the country.
