Microsoft outage likely to expand insurance coverage, pricing
Tata AIG General Insurance, have received 'circumstances notifications' from major airlines including Air India following the global Microsoft outage on June 19, two sources said. The outage, which affected numerous institutions worldwide, may influence insurance pricing and coverage for the coming year.
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The outage, caused by a cyber incident involving CrowdStrike, is expected to have had a limited impact on insurance claims due to existing policy constraints. A majority of claims related to the outage fall under business interruption coverage, which typically includes a waiting period. This means for the initial few hours of disruption, coverage does not activate, restricting the overall impact of the event.
«Our policy does cover situations like this massive outage, but we have not yet received any claims from our policyholders due to this outage,» said Rajagopal Rudraraju, executive vice president, TATA AIG General Insurance.
The outage's impact on airlines could be limited due to the absence of business interruption coverage in their policies.
«Indian airlines do carry business interruption insurance, but it generally covers around $500,000 and includes high deductibles,» said an insurance broker. «The policies typically exclude coverage for the initial 12-18 hours of disruption, limiting potential claims. Some airlines have notified insurers of the circumstances, though this does not guarantee claims will be filed.»
Banks have not reported any significant
