Indian bank cyber insurance claims exceed ₹150 crore

Cyber insurance claims within the Indian banking sector have surpassed ₹150 crore in the first half of fiscal year 2027, according to industry experts. This represents a significant increase compared to the ₹25-75 crore annual claims seen five years ago.

Drivers for this surge include a rise in ransomware attacks and data breaches, alongside stricter reporting regulations and increased awareness. The claims ratio in the banking sector has reportedly grown by 50% to 60% over the past year. While total cyber insurance premiums in India were estimated between ₹900-1,100 crore in FY26, the cost of coverage for financial institutions has expanded significantly, with sum insured amounts rising from $10-25 million in FY21 to $50-100 million in FY26.

In a recent incident, AU Small Finance Bank disclosed on 30 October 2026 a possible data leak involving its Salesforce-hosted platform, which contains limited data for vehicle-loan customers. The hacking group ScarlettGroup has claimed responsibility for the breach and threatened to leak data. The bank stated that its internal systems remain unaffected and the matter is under investigation.