May 2025 | 765 words | 3-minute read
A 2023 report by Deloitte predicted that the cyber insurance market in India, currently valued at $50-$60 million, would grow at a compounded annual growth rate (CAGR) of ~30% for the next three to five years.
The report further stated that cyber insurance would be one of the fastest growing insurance segments, given the increasing number of cyber-attacks encountered by companies that were embracing large scale digitisation in sectors as diverse as IT, BPOs, pharma, and manufacturing, as well as organisations engaged in broader areas of economic activity, like supply chain, retail and finance. Small and medium enterprises are also frequently targeted by cybercriminals due to their often-limited infrastructure, making robust cyber insurance solutions essential for their risk management.
In response, in January 2025, Tata AIG introduced CyberEdge, a new cyber insurance solution designed to protect businesses of all sizes against a wide array of cyber risks. Tata AIG’s 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, with numbers projected to surge to 1 trillion annually by 2033. The need for rigorous cyber insurance solutions has never been mor pressing. “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,” says Najm Bilgrami, National Head, Financial Lines, Tata AIG General Insurance. “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.”
Safeguarding revenue
As a pioneer in cyber insurance, Tata AIG continues to offer its clients market-leading solutions that help their businesses get back on track after a cyber event, but also help prevent losses in the first place.
CyberEdge covers Network Interruption losses arising from the actual moment the cyber event occurs, ensuring simple calculation of the direct impact of a cyber event on their clients’ revenue and profit. Moreover, CyberEdge can calculate the network interruption loss on either a Gross Profit basis or a Net Profit basis to ensure the best settlement in case of clients in different geographies who must subscribe to different methods of assessing business interruption.
“CyberEdge has been meticulously designed to provide both financial safeguards and swift, expert-led responses to incidents.”
With a view to empowering clients to proactively minimise the impact of a cyber event, once cover is triggered after the waiting period, any mitigation costs incurred from the beginning of the cyber event are covered. And in the event a client needs to immediately shut down their business — for example, if ransomware is sharing clients’ data externally — CyberEdge recognises the realities of loss containment, and covers the impact on revenue and profit.
Additionally, CyberEdge offers first response cover in the first critical 24 hours after a cyber-attack, to ensure best-in-class legal and IT forensics; bricking recovery expenses to replace damaged equipment in the event that an incident renders systems inoperable; wider computer system protection extending to BYOD (Bring Your Own Device), OT systems, industrial control system, and SCADA systems; mitigation costs and loss prevention services; coverage for cyber crimes; and multimedia activity protection, which covers liabilities from digital media content published on websites or social platforms.
With compliments
As per the package selected by clients, Tata AIG offers complimentary tools and services with each CyberEdge policy. Some of these include:
- Employee Cybersecurity eLearning and Phishing Simulation, which includes e-learning courses tailored to employees’ roles. A phishing simulator, which is part of the e-learning tool, helps deliver real world scenarios to reinforce learning.
- Blacklist IP blocking and domain protection, which enables organisations to control their exposure by leveraging vast threat intelligence repositories, precision geo-blocking, and blacklist automation to reduce attack surface up to 90%.
- Infrastructure Vulnerability Scan of up to 250 IP addresses to identify critical vulnerabilities that could potentially be exploited.
- Network Security Ratings Scorecard for an ‘outside-in’ perspective of clients’ overall cybersecurity in ten risk categories.
Tata AIG’s dedicated hotline ensures clients immediate guidance, with legal and technical experts available to manage the situation promptly. The process includes initial assessment, activation of an incident response team if required, and support in the form of regulatory notification or to ensure minimal disruption to business operations.
