Cyber Insurance for SMEs: Oriental Insurance CMD Mr. Sanjay Joshi on Building Resilience in a Digital Era

At the Cyber Vigilant SMEs: Stay Secure, Stay Ahead conclave organized by SME Communities in Chennai, Mr. Sanjay Joshi, Chairman & Managing Director of The Oriental Insurance Company Ltd., engaged in a fireside chat with Dr. Ravi Seshadri, an industry veteran and strategic advisor to global insurance and insurtech firms. The discussion shed light on the growing threat of cyberattacks to India’s SME sector and the pivotal role of insurers in mitigating these risks through tailored solutions.

Innovation and the Need for Cyber Cover

Addressing the question of innovation in insurance for SMEs, Mr. Joshi highlighted that innovation stems from market need and has accelerated with increased competition and evolving risks. While public sector insurers pioneered package policies for small businesses, the absence of a comprehensive policy that includes cyber liability remains a gap. He committed that Oriental Insurance aims to be a pioneer in launching a cyber-inclusive package policy designed for SMEs, signaling a proactive step toward addressing emerging vulnerabilities.

Cyber Risk and Active Insurance

Explaining why cyber insurance cannot follow the traditional passive model, Mr. Joshi emphasized the shift toward “active insurance”, where insurers play an ongoing role in monitoring and mitigating risk. Globally, cyber policies often include tie-ups with cybersecurity vendors for real-time monitoring, vulnerability assessments, and instant breach response. Oriental Insurance, he shared, has already empanelled cybersecurity vendors and intends to offer end-to-end cyber protection and post-breach services as part of its upcoming products.

Market Dynamics and Reinsurance Challenges

Discussing the underwriting approach for cyber risks, Mr. Joshi noted that current reinsurer reluctance, especially for MSMEs, stems from concerns around weak security infrastructure and low cyber hygiene. This underscores the need for awareness programs and capacity-building to make the market sustainable. “Insurance cannot thrive without sustainability,” he said, adding that Oriental Insurance is strengthening its actuarial and product innovation teams to address these emerging challenges.

Commitment to MSMEs

Reaffirming Oriental Insurance’s deep-rooted association with SMEs, Mr. Joshi stressed, “When SMEs grow, we grow.” The company plans to launch five new products, including parametric insurance to cover climate risks and the much-awaited cyber policy for SMEs. These innovations, he said, are part of Oriental’s commitment to safeguard the economic backbone of India.

As digital adoption accelerates among SMEs, cyber resilience is no longer optional—it’s a necessity. With insurers like Oriental stepping up to design specialized products and provide integrated risk solutions, the conversation marked a turning point in India’s journey toward cyber-secure entrepreneurship.