The compromised data, originating from more than 30 breaches both past and recent, has escalated the threats of credential stuffing, identity theft, and account hijacking.
Insurers and analysts regard this as a wake-up call for both individuals and enterprises, many of which continue to underestimate the importance of cyber insurance amidst escalating regulatory demands under the Digital Personal Data Protection (DPDP) Act.
S Vishwanathan, Head – Underwriting and Reinsurance at SBI General Insurance, emphasized that while awareness levels are rising, numerous firms managing significant data volumes still choose low coverage limits.
Such limits may be inadequate given the enhanced liabilities outlined in the DPDP Act.
He also pointed out the restricted reinsurance capacity within the Indian market, particularly for high-value policies, leading insurers to seek support from international reinsurers.
Sandeep Dadia, Chief Executive Officer and Country Head at Lockton India, remarked that awareness regarding third-party liability remains minimal in India. The market’s relatively low litigious nature often results in lengthy settlements for such claims, which are not thoroughly understood.
He cautioned that the lack of penetration in liability insurance places businesses at significant risk.
Amarnath Saxena, Chief Technical Officer – Commercial at Bajaj Allianz General Insurance, noted that poor digital practices, like using weak passwords or clicking on dubious links, can create vulnerabilities across organizations. He mentioned that current cyber insurance serves as a mechanism to promote enhanced security through audits, policy formulation, and risk evaluations.
Evaa Saiwal, Head – Liability and Cyber Insurance at Policybazaar for Business, indicated that the magnitude of the leak signifies a shift in risk assessment methodologies. She observed that insurers are now requiring multi-factor authentication, endpoint protection, and even dark web monitoring as baseline criteria for coverage.
Parthanil Ghosh, Executive Director at HDFC ERGO General Insurance, stated that cyber incidents have evolved beyond mere technical issues, now carrying financial, legal, and reputational repercussions. He added that with increasing scrutiny under laws such as the DPDP Act, cyber liability coverage has become vital for ensuring business continuity across various sectors.
