India’s Insurance Regulatory and Development Authority (Irdai) has no plans to bring in standard products for the liability insurance policy at this time, a senior member of Irdai said on Thursday.
However, the member said that advice is given to insurers to assess the risks associated with these types of products. A working group has been formed by the regulator to review the standardization of the liability insurance policy. The Irdai issued a circular earlier this month on the product structure for cyber insurance.
The working group interacted, they demonstrated among themselves and they also had consultations with stakeholders. And they decided, at this point, that we wouldn’t advise standardizing the liability insurance policy, ”Irdai member SN Rajeswari told a webinar.
She said the decision was made given the nuances of cyber law and the rapidly growing digital ecosystem, and the jurisdiction aspect was also involved as there are sanctions between countries.
“So, faced with the emergence of some risks, they decided that now is not the right time to release standardization, but of course, instead of standardizing, advice can be given.
“A guidance document was released by Irdai earlier this month to allow insurers to assess what new technologies are forcing cyber risks and identify what the protection gap is,” Rajeswari said. during a speech at the ‘National E-Summit on Cyber Insurance – Reinvigorating the Future for Bridging The Gap’, organized by the industry organization Assocham.
Even though cyber risk insurance products are available in the market, both for businesses and for individuals, she said insurers can now identify possible risks and recommendations that can be implemented. .
“Thus, insurers can identify what the protection gaps are and they can accordingly manufacture products according to the needs of the market,” she added.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)