First-time buyers make up 30-35% of clients, indicating growing awareness and a shift towards proactive cyber risk management. Business interruptions from data breaches account for 45% of claims, highlighting the importance of coverage for business continuity.
Regulatory compliance and contractual obligations, especially in BFSI and IT sectors, drive increased demand.
A report by PwC revealed that 93% of respondents anticipate an increase in their cybersecurity budgets next year, with 17% planning to raise their budgets by 15% or more, an increase of 1% from last year.
Additionally, 42% of Indian business leaders are prioritising data protection and remediation in the aftermath of recent cyber breaches as their main cyber investment for the coming year, further highlighted the report by PwC.
BFSI and tech sectors dominate adoption, holding 70% of the market share, followed by startups (25%), healthcare (5%), and logistics (5%).
As per India Cyber Threat Report 2025, the growing use of cloud services will heighten vulnerabilities, mainly due to misconfigured environments and insecure APIs. Cybercriminals will take advantage of these flaws to steal sensitive data and disrupt services, with finance, IoT, and SaaS industries being particularly at risk due to inadequate API security.
Regulatory compliance and contractual obligations, particularly in the BFSI and IT sectors, are driving increased demand for cyber insurance. As companies conduct more risk assessments, they are becoming more aware of the financial impacts of cyberattacks, leading to greater insurance adoption.
The data in Policybazaar’s report highlights the expanding market penetration of cyber insurance is due to businesses recognising the necessity of robust cyber coverage in today’s day and age.
