Mathur said the demand for cyber insurance coverage will come from the government entities and large organisations that are operating in higher hazard sectors.
He said with business interruption at the centre of property and casualty losses, there will be pressure on insurers to cover claims.
"The impact of COVID 19 on business interruptions claims will largely depend on the policy wordings, he noted.
He said the evolving situation may also force a review of the pricing of the existing insurance products in the light of changing claim experience in each segment.
Insurers are confronting a new reality in the COVID-19 situation as a long- term disruption to the customers, employees, investors and suppliers. The impact of the pandemic on insurance products will vary according to the cover insurers offer, Mathur said.
While health (insurance) products are likely to bear a direct impact, property and casualty (insurance) products, covering business interruptions, will witness different degrees of impact as the result of lockdowns, he mentioned.
Mathur believes that the Covid19 outbreak is unlikely to have an adverse impact on the financial results of insurance companies.
The only two segments affected in the country are health and travel, he said.
Despite the increased possibility of claims under health and travel segments, most of the general insurers will remain unaffected because of the improved loss ratio in the automobile segment, he said.
Mathur said going forward, insurers can adopt a phased approach to identify and address themes that are disrupting their existing business.
"There is a need for them (insurers) to evolve long-term strategies with business models fostering virtual interactions across the value chain, a lean and agile technology architecture and enterprise and cyber resilience, he suggested.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.