India's cyber insurance market is at an inflection point. Valued at USD 752.55 million in 2025, the market is projected to reach USD 8,848.15 million by 2034, growing at a compound annual growth rate of 28.09%. The gross written premium for cyber insurance in India is estimated at approximately Rs 1,200 crore for 2025-26.
Why Now? The Perfect Storm
Three factors are converging to drive cyber insurance demand in India. First, the Digital Personal Data Protection (DPDP) Act is reshaping corporate risk profiles, with data fiduciaries now facing genuine liability exposure. Second, India experienced over 2.04 million cybersecurity incidents in the past year, with an average cost per incident of USD 2.5 million for large businesses. Third, the rapid digitalisation of BFSI, healthcare, IT, and retail sectors is expanding the attack surface.
Ransomware remains the most visible threat. Indian reports show median ransomware payouts of approximately USD 481,000 (Rs 4.3 crore) and median ransom demands of approximately USD 961,000 (Rs 8 crore) per incident.
Market Dynamics
Cyber insurance premiums in India have stabilised after steep increases in 2023-24. Leading domestic underwriters include New India Assurance, ICICI Lombard, HDFC ERGO, and Bajaj Allianz, with Lloyd's of London capacity supplementing the domestic market for large limits.
Sources: IMARC Group Report, (Re)in Asia (May 5, 2026), Asia Insurance Post (December 2025), CybersecAsia (March 2026)