Cyberattacks in India Test Cyber Insurance Coverage

what happened

Moody's reports that a rise in cyberattacks on Indian organisations, among them State Bank of India, Central Bank of India and Bharat Electronics, along with hundreds of non-bank lenders, has set off a wave of cyber insurance claims. Insurers may face losses estimated in the thousands of crores over the coming months.

Businesses are rushing to expand their cover, yet the debate itself suggests existing policies do not always address newer threats. Cyber policies typically cover forensic audits, data breaches, business interruption and ransomware losses. In some cases insurers even negotiate directly with hackers over whether and how much ransom to pay. Coverage for attacks involving rogue AI agents remains uncertain.

why it matters

The central question for the industry is who pays when a single vulnerability exposes thousands of organisations to the same threat. The answer affects insurers' reserves and the terms of future policies, so investor attention on insurers active in the Indian market could grow as claims come in.

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