TATA AIG Launches CyberEdge: A Comprehensive Cyber Insurance Solution for Indian Businesses

·         Offers comprehensive financial and operational support, covering forensic investigations, legal fees, data recovery, extortion payments among others

·         CyberEdge aims to capture 25% of the cyber insurance market in the coming five years.

Bengaluru, 22 January 2025: TATA AIG General Insurance Company, a leading general insurance provider, has introduced CyberEdge, a new cyber insurance solution designed to protect businesses of all sizes against a wide array of cyber risks. The policy offers robust financial and operational support, covering forensic investigations, legal fees, data recovery, extortion payments, and losses from business interruptions. With a strong commitment to enhancing cybersecurity resilience, CyberEdge aims to capture 25% of the cyber insurance market in the coming five years.

A recent report by Prahar highlighted that 79 million cyberattacks were recorded in India in 2023 and the threat landscape is rapidly evolving. The report also projected that these attacks could surge to 1 trillion annually by 2033.

Commenting on the launch, Mr. Najm Bilgrami, National Head, Financial Lines, said, “The Indian cyber insurance market, valued at INR 850 crores in 2024, has witnessed significant growth in recent years. With a projected CAGR of 25% between 2025 and 2030, cyber insurance is set to become an integral part of risk management strategies, enabling businesses to mitigate damages effectively, recover operations seamlessly, and thrive in today’s digital-first economy. A cyber breach itself may not be catastrophic, but failing to address it properly can lead to even bigger challenges. CyberEdge has been meticulously designed to provide both financial safeguards and swift, expert-led responses to incidents.”

Post-pandemic, there has been a remarkable surge in demand for cyber insurance from various sectors, including IT companies, BPOs, banks, and other industries. Additionally, small and medium enterprises (SMEs) are increasingly targeted by cybercriminals due to their often-limited infrastructure, making robust cyber insurance solutions essential for their risk management.

Key Features of CyberEdge Include:

·         First Response Cover: It gives Insured immediate access to Tata AIG’s panel of incident response experts 24/7/365during a cyber incident. The first 24 hours are critical, and the First Response service (where provided) ensures best-in-class legal and IT forensics within 2 hours of contacting the dedicated hotline.

·         Bricking Recovery Expenses: If a cyber incident renders your computer system where the data was inoperable, it covers the costs of replacing damaged equipment and helps resume normal business operations.

·         Comprehensive Network Loss Calculation: Option for the client to opt Gross Profit or Net Profit basis, based on method best suited your business. Additionally, Policy also cover third-party forensic accounting firm’s professional fees to calculate the loss can also be covered.

·         Wider Computer System Protection: Coverage extends to cover BYOD (Bring Your Own Device), OT Systems, Industrial Control System, and SCADA systems.

·         Network Interruption Coverage: Addresses interruptions up to 120 days post-incident including the proactive mitigation cost.

·         Insured Events: Under the Network Interruption section, policy extended to cover security and system failures including the voluntary or regulatory shutdowns, and OSP-related security and system failures (if opted).

·         Mitigation Costs and Loss Prevention Services: Extend cover beyond indemnity where policy offers Loss Prevention Services with no extra premium.

·         Coverage for Cyber Crimes: Protects against losses resulting from cyber-related crimes.

·         Multimedia Activity Protection: Covers liabilities from digital media content published on websites or social platforms.