Insurance Industry

While fundamental and essential cybersecurity in the insurance industry is similar to other industries, there are a few issues which are unique and/or need more focussed attention:

  1. High Volume of Sensitive Data:The insurance industry deals with a vast amount of sensitive information, such as customer data, financial data, and personal identifiable information (PII). This data is a prime target for cybercriminals, making the industry vulnerable to data breaches and theft.
  2. Legacy Systems:The insurance industry heavily relies on legacy systems that may not be equipped to handle modern cybersecurity threats. These outdated systems may have vulnerabilities that can be exploited by hackers.
  3. Third-party Risks: Insurance companies often rely on third-party vendors for services such as underwriting, claims processing, and data storage. These third-party vendors can pose a significant risk to the insurance company’s cybersecurity, as they may not have adequate security measures in place.
  4. Cyber Insurance Claims: With the rise of cyber threats, insurance companies have started offering cyber insurance policies to protect their clients from cyber-attacks. However, these policies can be challenging to underwrite, as cyber threats are continually evolving, making it challenging to predict the risk accurately. Additionally, cyber insurance claims can be costly and complex, requiring specialized expertise to investigate and process them.

Regulatory Compliance: The insurance industry is heavily regulated, and companies must comply with various regulations regarding data privacy, cybersecurity, and breach notification. Non-compliance can result in significant fines and legal penalties.

 IRDAI (Insurance Regulatory Authority of India) is the driving force behind regulations for this industry. They have released guidelines and checklists for compliances. They have covered the entire industry including insurance companies, brokers, aggregators, point of sale merchants, agents, car dealers, etc. The level of compliance varies for each player in the value chain but each entity need to comply with their part of the regulation.

At NxgSecure, we understand IRDAI regulations well and have worked with multiple companies to help them meet this compliance.