Cos Rush for Cyber Insurance on Data Laws, Digitisation

Insurance is generally difficult to sell, but for a product like cyber insurance, the coin has flipped. The market is at a point where demand is growing fast and insurance companies might not be prepared to meet it yet, say industry insiders. Multiple insurance brokers said that over the last couple of years, the demand for cyber insurance is steadily climbing and is expected to climb further now that India has formulated its own data protection law. But cases of high claims and the complexity of the product make it such that insurance companies are wary of selling one. And also, for startups to qualify for a good cover is very difficult. “Demand for cyber insurance has been increasing steadily… The market is currently valued at $50-60 million and has been growing at a compound annual growth rate of 27-30% over the past three years,” said Dhirandra Mahyavanshi, CEO, insurance broking startup Turtlemint. He further added that over the next few years, demand for cyber insurance is expected to grow by around 30% in India. Recently licensed insurance broking startup Bimakavach is betting big on this Space. Tejas Jain, founder of Bimakavach, said that he is building an entire suite of insurance products that new-age small- and medium-sized businesses will need to keep their operations safe and cyber insurance is a key product in that stack. Companies like fintechs, software service providers hold on to a lot of data. Products like cyber insurance, fraud cover, including both insider and third party fraud, directors and officers liability all these are being taken by new generation companies. “A lot of conversations are happening around cyber insurance covers in the wake of India enacting the data protection law too,” Jain added. Multiple reasons are driving demand among businesses these days. More and more companies are digitizing their operations, in turn gathering a lot of data on their customers. While it helps them scale up their business, it also makes them vulnerable to cyberattacks.

E-commerce order volumes up 37% this festival season

E-commerce order volumes grew handsomely this festive season, increasing by approximately 37% during the festive season sale of 2023 as compared to the festive sale period in 2022, according to the analysis of orders processed through Unicommerce, the online retail enablement tech platform. “The festive season determines the growing scale of e-commerce in India,” said Kapil Makhija, chief executive officer, Unicommerce. “As industry sectors continue to embrace the country’s e-commerce ecosystem, shoppers from across India’s length and breadth are willingly opting for online shopping.” In addition to the substantial growth in order volumes, the gross merchandise value (GMV) also saw an increase of 22% during the same festive period. The success of the festive season sales in parts may be attributed to attracting discounts on the online marketplaces and robust advertising campaigns. This has helped marketplaces record an impressive year-on-year (YoY) order volume growth of 39%. Brand websites, on the other hand, also reported a strong 23% increase in e-commerce order volumes.  Interestingly, the GMV reported an inverse trend with brand websites recording a 29% YoY GMV growth, while marketplaces recorded a 21% YoY GMV growth. This may signify that consumers are not only ordering more, but loyal customers are increasingly purchasing directly from their trusted brands, leading to a surge in average order values. The fashion and accessories segment along with beauty and personal care, emerged as the two most prominent categories in terms of order volumes. These segments displayed consistent growth in both volume and GMV during the festive month. Categories like FMCG and home decor have emerged as strong e-commerce contenders. These are now laying inroads for newer segments to flourish in the e-commerce ecosystem. As per the orders processed through Unicommerce’s platforms, Rajasthan and Uttarakhand took the lead to become the top two states in terms of growth in order volumes. Haryana ranked at the third position, Uttar Pradesh at the fourth, and Meghalaya in the fifth spot. Another striking trend observed during the festive season sale was the remarkable rise of prepaid orders this year.

Snapchat users can now buy Amazon products without leaving the app

Amazon will now run shopping ads for select products on popular photo messaging app Snapchat. Unlike prompts to get a user to open their phone’s web browser, Amazon’s shopping ads will allow them to shop and check out without having to exit the Snapchat app. “For the first time, customers will be able to shop Amazon’s Snapchat ads and check out with Amazon without leaving the social media app,” the Amazon spokesperson said. “Customers in the U.S. will see real-time pricing, Prime eligibility, delivery estimates, and product details on select Amazon product ads in Snapchat as part of the new experience. In-app shopping with Amazon is available for select products advertised on Snapchat and sold by Amazon or by independent sellers in Amazon’s store.” Snapchat shows ads to users when they click through their friends’ “stories” or temporary video or photo posts that can be publicly or selectively viewed for 24 hours.

Govt to Ask Social Media Cos for Greater Check on Deepfakes

After the outrage over use of actor Rashmika Mandanna’s deepfake, the government issued an advisory to all major social media companies in India against hosting contents that impersonate another person, and to promptly remove such content within 36 hours of receiving complaints.  The advisory asked the social media platforms to strictly follow India’s Information Technology Act of 2000. The government’s action followed the viral spread of a deepfake video featuring Mandanna on social media platforms. As the video went viral, many people, including Bollywood veteran Amitabh Bachchan, sought legal action against those responsible for the criminal act. Minister of State Rajeev Chandrasekhar assured that the government is committed to ensuring the safety and trust of all digital citizens using the internet. He emphasized that it is a legal obligation for platforms to prevent the posting of misinformation by any user and to ensure that when reported by any user or the government, misinformation is removed within 36 hours. “If platforms do not comply with this, rule 7 will apply, and platforms can be taken to court by aggrieved individuals under the provisions of the IPC,” said Chandrasekhar.

Bitcoin Rally Renews Interest in Cryptos

Indian crypto investors are starting to warm up to digital assets after a strong rally in Bitcoin prices spurred trading volumes on local exchanges. Bitcoin was trading at $36,366, marking a 28.52% increase over the past 30 days and a 40.44% surge compared to the previous three months. Bitcoin’s price has climbed 119.52% from the lows of around $16,000 over the past one year. It’s not just the most dominant crypto currency which has been on the upswing, but popular altcoins were also trading higher in the last 30 days. Ethereum saw a rise of 24.6% ($1,965), Ripple increased by 24.66% ($0.61), Solana surged by 142.65% ($58.02), and Cardano climbed by 49.37% ($0.369). Sumit Gupta, CEO, CoinDCX, a leading Indian crypto exchange, said market sentiment is at its most positive since November 2021, with a significant impact on volumes observed on the platform. “The daily spot volumes have surged by 2X to 3X, driven primarily by BTC, SOL, and GAS,” he said. At another exchange, CoinSwitch, weekly average trading volume for Bitcoin surged by over three times, and overall exchange volume jumped eightfold.“The crypto market has seen an uptick in the past few weeks. This overall market optimism has been reflected in investor behaviour as well, with exchanges and platforms recording increased trading volumes,” said Balaji Srihari, business head, CoinSwitch. Rajagopal Menon, vice-president at WazirX, said post the Bitcoin surge, the number of buyers has doubled on the platform and volumes have also more than doubled.  After a sustained rise, Bitcoin has been choppy lately, breaching a key support level of $36,000 during the week.  All major altcoins were down 2-6% during a minor correction in the crypto market. The rise in prices of the most-dominant virtual digital asset has led to the total market capitalization of crypto hitting $1.39 trillion, from $800 billion at the start of 2023. “Bitcoin has emerged as the most resilient digital asset in the world with a market capitalisation of over $700 billion. Bitcoin has witnessed a highly volatile year but has been a high performer in the digital asset race,” said Manhar Garegrat, country head India & global partnerships at Liminal Custody Solutions. Investors attribute Bitcoin’s rally to tailwinds, notably the anticipated approval by US regulators for Bitcoin exchange-traded fund (ETF) offerings from major financial institutions such as BlackRock, Fidelity, and Franklin Templeton.

Indian Short Video Apps Log 250 m+ Users

Short-form video platforms in India are thriving with a user base of 250 million, with approximately 65-70% of users coming from Tier II cities, semi-urban, and rural areas, according to a report from Redseer Strategy Consultants.  The report, titled ‘Demystifying India’s SFV Platforms,’ reveals that about 40% of users are engaging in online transactions on these platforms, presenting various monetization opportunities in e-commerce, online gaming, and OTT video streaming. The rise in disposable income among Tier II+ users offers numerous monetization possibilities for India’s short-form video landscape. Models like live commerce and live gifting hold promise for increasing monetization, according to Mukesh Kumar, Associate Partner at Redseer. User-generated influencers, categorized as micro, macro, mega, and elite, have become prominent and can earn substantial income through advertising, live commerce, platform payouts, brand deals, and virtual gifting. User engagement on Indian short-form video platforms is driven by the provision of original, relatable, and non-inflammatory content with low repetition rates, resulting in a net promoter score of around 55%. The ban on TikTok in 2020 created opportunities for both Indian and international short-form video platforms, which now cater to diverse audiences and offer new avenues for advertising and content consumption. While global platforms are favored by urban users, Indian platforms have gained popularity in non-metro and semi-urban areas due to the availability of high-quality regional-language content created by local talent. Nearly 64% of Indian short-form video platform users are aged up to 25, with mature users making up less than 3% of the user base. Content with a ‘hook and hero’ narrative has proven effective in reaching diverse user demographics, contributing to Indian platforms’ net promoter score of around 55%, making them a promising tool for advertisers.

More than 70% Indians are concerned about unethical use of AI

Nearly 74 percent users in India are concerned about the unethical use of artificial intelligence by companies, says a report released by Salesforce. The study, titled ‘the state of connected consumer report’ is based on insights from 14,300 consumers and business buyers across 25 countries, including 650 from India. It looks at how AI and macroeconomic trends are reshaping customer expectations. 90% of Indians want personalization, 93% want faster services. 90% of users want to know whether they are communicating with AI or humans. 65% believe that greater visibility into AI will deepen their trust. 

Samsung’s Own GenAI ‘Gauss’ is Out

Samsung Electronics showcased its latest updates to software and services, including its new generative artificial intelligence (AI) model, Samsung Gauss, at an annual tech conference. At the Samsung Developer Conference (SDC) Korea 2023 in Seoul, the South Korean tech giant introduced Samsung Gauss and its three sub-models — Gauss Language, Gauss Code and Gauss Image — with plans to integrate it into products to improve consumer experience. Samsung Gauss, unveiled at the company’s AI event is aimed at enhancing the work efficiency of workers by facilitating tasks, such as composing emails, summarizing documents and translating content. The AI model is expected to be implemented in Samsung’s upcoming smartphones and tablets, including the Galaxy S24.x “Beyond simply understanding and generating language, Samsung Gauss will maximize user-device interaction, and provide a more intuitive and natural user experience, ” Lee Joo-hyung from Samsung Research’s Global AI Center said in a keynote speech. “With this technology, we expect users to have a more convenient and personalized experience, and to do more creative things with our devices, ” he added.

‘Indian Banks’ Digital Maturity Score Above Global Average’

Indian banks have scored above the global average in the Digital Banking Maturity survey by consultants Deloitte but have scope to improve to match what it calls the global champions, which are ahead in providing non-financial services such as healthcare. But Indian banks were ahead of global peers on user experience and they could improve in the areas of relationship, customer onboarding, and day-to-day banking. “PMF (Personal Financial Management) becomes a key aspect in how people manage their money. With millennials and Gen Z taking over, people are going to need this feature even more going forward,” said Vijay Mani, partner at Deloitte India, while releasing the Digital Banking Maturity survey. Deloitte chose 304 banks across the world to study their digital preparedness which included the technology employed and how well they were tuned to serve the customers. In India, it chose the top eight banks, but it did not disclose their names.

YouTube AI Tool for Info on Videos

YouTube is testing a new AI-powered chatbot that can converse with viewers to let them “dive deeper into the content they are watching.” The new conversational tool on YouTube will provide “answers to questions about the video you’re watching, recommendations for related content, and more, all without interrupting playback,” YouTube announced. The “YouChat” feature is available to a “small number of people on a subset of videos.” In the next few weeks, it will roll out to YouTube Premium members in the U.S. on Android devices, the video platform said. Users who have access to the experimental chatbot feature can access the tool by tapping the new “Ask” button beneath select videos and begin by asking questions about the video or choosing a suggested prompt. A YouTube spokesperson said the conversational tool does not use Google’s Bard chatbot. Rather, its responses “are generated by large language models that draw on information from the YouTube platform and the web,” according to Youtube.