The Economics of Cyber Insurance for Indian SMEs: A Strategic Risk Management Approach

• Author(s): Shubham Vishnu Rokade; Aman Sudesh Naraskar; Vaibhav Kalu Donde
• Paper ID: 1717652
• Page: 1497-1501
• Published Date: 14-05-2026
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 9 Issue 11 May-2026

Abstract

This paper investigates the strategic necessity and economic viability of cyber insurance for Indian Small and Medium Enterprises (SMEs). As SMEs are increasingly targeted and lack extensive cybersecurity budgets, a single cyber incident can be catastrophic. The study argues that cyber insurance serves as a vital risk transfer mechanism, covering critical first-party costs (e.g., forensics, business interruption, extortion) and third-party liabilities (e.g., regulatory fines, legal fees). Crucially, the approach emphasizes that insurance is effective only when integrated with proactive cybersecurity hygiene as part of a holistic risk management strategy.

Citations

IRE Journals:
Shubham Vishnu Rokade, Aman Sudesh Naraskar, Vaibhav Kalu Donde "The Economics of Cyber Insurance for Indian SMEs: A Strategic Risk Management Approach" Iconic Research And Engineering Journals Volume 9 Issue 11 2026 Page 1497-1501

IEEE:
Shubham Vishnu Rokade, Aman Sudesh Naraskar, Vaibhav Kalu Donde "The Economics of Cyber Insurance for Indian SMEs: A Strategic Risk Management Approach" Iconic Research And Engineering Journals, 9(11)