Did you know? Indian organizations faced an average of 2,807 cyberattacks per week in Q1 2024, according to Check Point Research (CPR). By Q2, these attacks had surged by an alarming 46%. The shift to remote work and digital business during the pandemic has intensified these threats across all sectors, and insurance is no exception. With the insurance industry handling vast amounts of sensitive customer data, cybercriminals see it as an attractive sector for attacks. Talking about cyber security threats, here’re the common cyber threats affecting insurance users:
👉Phishing Scams 🎣
India ranks third globally in phishing attacks, trailing only the US and UK. Phishing in India’s tech sector accounts for 33% of all attempts. While finance and insurance saw a shocking 393% spike in attacks last year. Phishing involves impersonating organizations like the IRDAI or major insurers to trick users into revealing sensitive information like passwords or account details. Using fake branding and urgent messages, scammers lure users into providing data that can lead to unauthorized access and financial loss.
👉Ransomware Attacks 💣
India is now the second-most targeted country for ransomware in Asia Pacific, according to Zscaler’s 2024 ThreatLabz report. Ransomware is a malicious software designed to block access to a computer system until a ransom is paid. And insurers are prime targets due to the sensitive data they hold.
👉Data Breaches & Identity Theft 🔒
Data breaches expose confidential information, creating serious risks for identity theft and financial fraud. An insurance administrator services provider disclosed a data breach that occurred in May affecting over 806,000 people. This is a stark reminder of the sector’s vulnerability.
With insurers holding high-value personal data, they’re lucrative targets for cybercriminals. These breaches don’t just impact individuals; for companies, they bring regulatory penalties, reputational damage, and significant financial losses
Raising Awareness For Cyber Security: Cyber Jaagrookta Diwas (CJD)
The Indian government is making bold moves in cyber security, nearly doubling its budget to Rs 759 crore for 2024-2025 – a significant leap from Rs 400 crore the previous year. This budget boost isn’t just a number; it’s a powerful statement on the urgency of fortifying our digital defenses.
In tandem with this financial commitment, the government has introduced initiatives like Cyber Jaagrookta Diwas (CJD). And declared October as National Cyber Security Awareness Month (NCSAM), dedicated to increasing public awareness about cyber security.
What is Cyber Jaagrookta?
The Cyber Jaagrookta Project is an initiative by the Ministry of Electronics and Information Technology to educate people on cyber security risks and safe online practices. The project highlights the threats posed by cybercrime and encourages proactive measures for protecting data and digital identities.
Cyber Jaagrookta Diwas for the Insurance Sector
Celebrated on the first Wednesday of every month as Cyber Jaagrookta (Awareness) Diwas, this initiative is especially relevant for the insurance sector, which handles vast amounts of personal and financial data, making it a prime target for cyberattacks. The day serves to:
- Raise Awareness about the latest cyber threats affecting the industry.
- Promote Actionable Strategies for safeguarding sensitive customer information.
- Encourage Both Insurers and Policyholders to prioritize cyber security practices.
How IRDAI Is Stepping Up In Cyber Security? ⚖️
To counter rising digital threats, the Insurance Regulatory and Development Authority of India (IRDAI) has taken decisive action to bolster cyber security in the insurance sector. By forming a working group on cyber liability insurance, IRDAI has set the stage for robust policies that protect both insurers and policyholders from cyber risks.
The IRDAI’s cyber security framework enforces strict security standards, ensuring data protection through best practices. This approach is reinforced by the Digital Personal Data Protection (DPDP) Act, which holds organizations accountable for safeguarding customer data.
This proactive stance is driving rapid growth in India’s cyber insurance market, valued at $50 – 60 million and projected to expand 27 – 30% annually over the next five years. Insurers are responding with a range of accessible products, underscoring the importance of cyber insurance as a critical safeguard in today’s digital landscape.
🔐 Conclusion: Stay Secure with CoverSure
At CoverSure, our dedication to cyber security and user empowerment goes beyond compliance – it’s about creating a safe, transparent, and reliable digital insurance experience. As an IRDAI-registered corporate agent and ISO-certified organization, we adhere to the highest regulatory and security standards to protect your data.
As part of this journey, we encourage all users to adopt strong cyber hygiene practices and remain vigilant. Simple steps like regularly reviewing privacy settings, using secure passwords, and staying aware of potential threats help maximize security.
Together, let’s embrace a future where digital insurance is not only efficient but built on the highest standards of safety and security.
