Industry observers expect insurers to roll out a new product designed to compensate property losses, health consequences, and even moral damages caused by breaches of personal data. The anticipated market introduction is seen by analysts and stakeholders as likely by the end of 2025. This outlook was reported by RBC in the All-Russian Union of Insurers, known as VUS, which gathers major players in the Russian risk market. The development signals a shift toward tangible coverage for individuals facing the consequences of cyber incidents beyond traditional property or health policies. In today’s risk environment, where data breaches are a rising threat, insurers are testing how compensation structures can address the broader fallout that touches everyday life and privacy.
Vladimir Novikov, risk director at Sber Insurance and head of the BCC cyber insurance working group, noted that the Federation Council is examining the option of introducing this form of coverage. It would be voluntary in most contexts but could become mandatory in specific sectors where data protection is critical. A representative from ARIA stressed that the need for such coverage is not open to debate, aligning policymakers with industry experts who see value in formal protection for data breach risks. The discussion reflects a broader effort to align regulatory aims with practical risk transfer solutions across the economy.
Novikov added that industry participants support voluntary coverage while exploring a menu of protection options for data owners and information platforms. These options could include a bank guarantee as an alternative form of security. He noted roughly five insurers have already shown interest, with the potential to reach ten as developers refine the product. The aim is to create flexible coverage that matches the varied risk profiles of organizations handling sensitive data while keeping the market open to additional players as demand grows.
Information about this insurance concept first surfaced in October. Last week the project was presented at a Federation Council roundtable that included Artem Sheikin, the first deputy chairman of the Federation Council Committee on Constitutional Legislation and State Building. The session highlighted ongoing dialogue between lawmakers and insurers about practical steps to protect citizens in the digital space and how risk transfer mechanisms might evolve accordingly, signaling a deeper collaboration between policy and industry on data security matters.
On November 7, the State Duma urged stronger measures to protect citizens from data leaks, including higher penalties for violations. Lawmakers argued that stiffer sanctions would raise the cost of lax data handling and push organizations to invest more in preventive controls and rapid breach response capabilities. The push aligns with a broader push in multiple jurisdictions to tighten accountability for data privacy breaches and to incentivize robust security practices across sectors that handle sensitive information.
Roskomnadzor previously reported that nearly 10 million records tied to Russian residents were exposed in October. The figure underscores the ongoing risk in the digital landscape and feeds into calls for stronger data protection regimes and more proactive risk management. Regulators worldwide watch developments in Russia as part of a broader conversation about privacy, security, and the economics of risk transfer in a connected world, with markets in Canada and the United States actively expanding cyber insurance to cover similar harms.
Related posts:
Expanded View on Russia’s Cyber Insurance Trends and Forecasts Smart Guide to Life, Health, Home, Auto, and Death Insurance Disability Insurance Accessibility in Russia and Europe Insurance Insights from Banco Sabadell’s Digital Forum Russian Insurance Market 2023: Growth Drivers, Ownership Shifts, and Sector Consolidation Insurance Fraud Trends in Russia: 2022 Losses, Enforcement, and Consumer Safeguards Insurance Payments to Widows in Fatal Traffic Accidents: Court Rulings and Recourse Accelerating MTPL Insurance Compliance via Traffic Cameras and Regulatory Reform Dog Welfare and Insurance Updates in Spain: What Owners Need to Know Reassessing Spare Parts Costs in Russia’s Auto Insurance Landscape OSAGO Policy Changes in Russia: Driver-Linked Options and Depreciation Removal ICRC Eight Rules for Cyber Warfare: Protecting Civilians in Digital Conflicts