Russians Increasingly Purchase Cybercrime Insurance

The demand for cybercrime insurance in Russia grew fivefold in 2020, with the number of policies purchased by companies approaching one thousand. This information was reported by “Izvestia,” citing the All-Russian Insurance Association (VSS).

According to the publication, the shift to remote work during the pandemic in 2020 led to a sharp increase in demand for cybercrime insurance. The number of policies covering such risks rose five times compared to 2019, reaching 955 in 2020. Svetlana Gusar, Vice President of the VSS, told “Izvestia” that currently fewer than ten organizations offer these services.

The highest demand has been recorded among credit institutions and companies involved in the IT industry.

Sberbank Insurance has noted a significant increase in interest in these types of insurance products. Experts attribute this trend to the transition of companies to remote work. However, it is noted that cyber insurance remains quite expensive, as banks and insurance companies are still unable to accurately determine the potential losses companies may face from cybercrimes.

The minimum price for a policy ranges from 5,000 to 600,000 rubles per month, while coverage amounts vary from 1 million to 150 million rubles, depending on the terms.