At this time the Indian cyber premium pool is expanding rapidly — industry estimates place market size in about one thousand of crores and forecast double-digit growth with cumulative premium estimate of about ₹60Bn for FY ending 2026.
Vibhaw Kumar, Executive Vice President – Liability, Anand Rathi Insurance Brokers
Cyber Insurance landscape is growing rapidly in India; accelerated by increasing cyber attacks (like data breaches, business interruption, ransomware, etc. Cyber attacks are larger, faster and increasingly disruptive, which is reshaping the cyber-insurance market.
As a result there are new buyers of insurance, pricing is hardening where claims are reported, compliance mandates, rapid digitalisation which is helping Cyber Insurance market to grow.
Premium trends: mixed response, faster growth
Cyber insurance pricing in India moved upward post covid, however since 2024 we are witnessing mixed response in the premium rates. For some industries we have seen soft ratings but for other industries there is a slight rate increases, as insurers have re-priced exposures on riskier accounts. At this time the Indian cyber premium pool is expanding rapidly — industry estimates place market size in about one thousand of crores and forecast double-digit growth with cumulative premium estimate of about ₹60Bn for FY ending 2026.
Insurers are also refining their underwriting: higher minimum premiums for larger firms, stricter pre-bind security requirements, lower limits in primary layers, and participation in more of use of structured placements (excess and co-insurance). Brokers are advising clients to invest in cyber-hygiene measures (MFA, endpoint controls, incident response) to secure commercially viable pricing and capacity.
Claims landscape: ransomware remains the most visible risk
Ransomware remains the most visible and an expensive claim driver. Indian reports show median ransom payouts running into hundreds of thousands of dollars, and median ransom demands at around a million dollars. For example, a recent report put the median ransomware payout in India at roughly USD 481k (≈₹4.3 crore) and median ransom demand at roughly USD 961K (≈₹8.7 crore).
Beyond ransom payments, insureds also face claims for forensic response, business-interruption, regulatory fines, legal costs, and customer notification, etc. Complex incidents can generate multi-party contingent losses that that expose challenges on policy wordings. Recent attacks that impacted service providers (viz CrowdStrike) and its demonstrated how an incident at a single supplier can deluge into many insured losses.
Who is buying cyber cover?
Demand is strongest where regulatory scrutiny and data sensitivity intersect with digital exposure. Current buyer segments leading adoption include:
•BSFI (Banks, NBFCs, Fintechs, Insurance companies) — high data sensitivity and regulatory compliance, transaction volumes, etc.
•Healthcare & pharmaceuticals — high data sensitivity and regulatory risk; clinical systems are lucrative ransomware targets.
•IT services & large enterprises — both direct targets and third-party risk providers to customers in varied global jurisdictions.
•Manufacturing, logistics & retail — where operational continuity and supply-chain disruption translate quickly into large BI losses.
Government action: progress — but implementation gaps persist
India has stepped up its policy toolkit: CERT-In guidance, RBI circulars for bank cyber frameworks, data protection discourse and increased budget allocations for national cyber initiatives signal serious intent. SEBI has mandated quarterly reporting on cyber security to the exchange and reporting of a cyber breach within 24 hours all the listed companies.
The government has also undertaken practical enforcement steps — blocking IMEIs , SIMs and setting up a dedicated cyber helpline. CyberDost is a very informative medium to educate corporates and individuals of various cyber frauds — and budgetary support for cybersecurity projects has increased in recent budgets. These moves have improved detection and response capabilities and raised corporate awareness.
Yet effectiveness is mixed. Incident numbers have risen even as though Government is constantly providing awareness on cyber frauds, detection improvements, suggesting better reporting and persistent monitoring attacker activity; many organisations still lack basic cyber hygiene. Policy enforcement and timely forensic capabilities have improved, but gaps remain at smaller enterprises and fragmented supply chains where implementation and compliance are uneven.
Is AI now a material factor in Indian cyber risk?
Yes. Threat actors are adopting GenAI to automate phishing, scale reconnaissance and even expedite exploit development. Recent advancements in GenAI have enhanced the efficacy of certain cyber operations, particularly those using social engineering. AI enhanced malware better success rates and speed of cyber fraudsters. For underwriters, AI raises two practical concerns: faster, larger attacks (which increase aggregate loss potential), and evolving model-risk or data-poisoning exposures for firms using large language models and AI services.
Conclusion — what buyers should do now
The market signal is clear: cyber insurance is becoming core to enterprise risk programs. Buyers should (1) prioritise robust baseline cyber controls, (2) review policy wordings (ransomware, contingent BI, third-party, AI exposure), (3) consider layered programmes for liquidity, and (4) treat brokers as active risk-management partners.
With rising incidents and new GenAI-driven tactics, the window to harden defences and secure reliable insurance capacity is now.