Published Paper Details:

The rapid digital transformation of the banking sector has significantly increased vulnerability to cyber-attacks, data breaches, and technology-driven financial crimes. As traditional insurance products largely focus on physical assets and fail to adequately cover intangible digital risks, cyber insurance has emerged as an essential risk-mitigation tool for banks. This study examines the rising importance of cyber insurance in the Indian banking industry by analyzing the escalation of cyber threats, regulatory requirements, and financial implications associated with cyber incidents. It also evaluates the evolving cyber insurance market in India through a comparative assessment of policy structures offered by private insurers such as HDFC Ergo and Bajaj Allianz, and highlights the considerable untapped potential due to limited involvement of public sector insurers. Additionally, the study explores the growing necessity of cyber insurance for newly consolidated Public Sector Banks, which now operate with larger digital footprints and interconnected systems. The findings reveal that cyber insurance plays a critical role in enhancing cyber resilience, ensuring business continuity, and safeguarding customer trust in an increasingly digital financial ecosystem. Overall, the research concludes that adopting comprehensive cyber insurance coverage is no longer optional but a strategic imperative for Indian banks facing escalating cyber risks and expanding digital operations.