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The Economics of Cyber Insurance for Indian SMEs: A Strategic Risk Management Approach
Subject area: Management and Commerce · Area of research: Cyber Insurance for SMEs
DOI: https://doi.org/10.64388/IREV9I11-1717652
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.
How to cite this paper
@article{1717652,
author = {Shubham Vishnu Rokade, Aman Sudesh Naraskar, Vaibhav Kalu Donde},
title = {The Economics of Cyber Insurance for Indian SMEs: A Strategic Risk Management Approach},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {11},
pages = {1497-1501},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1717652.pdf},
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.},
month = {May},
doi = {https://doi.org/10.64388/IREV9I11-1717652}
}