Bajaj Markets

Major Hurdles for Cyber Insurance

It’s no secret that the internet has revolutionised the way we live our lives. From shopping to education and everything in between – cyberspace is the enabler of life in the 21st century. Sometimes, sharing personal and financial information online is prone to multiple security hazards. This renders us vulnerable to issues like identity theft and misuse of our personal data. Even in the world of business, data breach is one of the leading manifestations of cyber-crime and this has longstanding implications on everyone involved.

In India currently, there are more internet users than ever before, and the number continues to rise steadily. Add to this the fact that an increasing amount of our everyday life takes place online, the need for cyber insurance is greater than ever. Yet, there are still some major obstacles that impede its popularity. Let’s take a look at why cyber security hasn’t quite become as popular as it should:

The internet boom in India has been made possible because of the sheer variety of devices available to the consumer – from high-end voice assistants and laptops to basic smartphones. Typically, higher end devices offer more security (via encryption services) than their lower end counterparts. This creates a massive gulf in the level of security offered. The end result is that such a scenario makes it almost impossible for legal and technical standards to be set for data protection by the concerned authorities.

Private sector companies run their own critical infrastructure to deal with internal security, while the government as well as the armed forces have their own security provisions. Vitally missing is a national security architecture that unifies the efforts of various agencies and stakeholders to make sure that any and all cyber threats are dealt with and tackled effectively.

Unlike a country or a state that has certifiable physical boundaries, cyberspace is completely boundless. The fact that the internet is open and global is its greatest asset but also its biggest threat because attacks can come from anywhere. This means that the scope of vulnerability could be anywhere from an individual attack to a national one. To combat this, there is the urgent need for a conscious effort to develop the architecture and mechanisms necessary to make cyberspace safe for everyone.

Perhaps the most pressing issue for digital insurance is the lack of awareness of the sheer magnitude of the threat of cyber attacks. The lack of a legal framework to deal with cyber-crime compounds this problem and presents a grey area which can be exploited by cybercriminals.

Despite the hurdles that cyber insurance faces, it’s important that every individual and the corporate entity does what it can to prevent data hacks and keep the internet as safe as possible.

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