IRDA urges stronger cybersecurity for banks and insurers

Banks and insurance companies must do more to improve their cybersecurity, according to Rajay Kumar Sinha, a member of the Insurance Regulatory Development Authority of India (IRDAI). Speaking in Pune, he highlighted that these institutions hold large amounts of sensitive data and are frequent targets for cybercriminals. Sinha mentioned that the issue often lies not in the technology used but in the lack of vigilance by these organizations. In some cases, management is unaware of sudden increases in website traffic, which can indicate a cyber attack. He emphasized that the IRDAI cannot sympathize with companies that fail to act on these warning signs. Many financial institutions also have inadequate encryption for their data, making them vulnerable. Most cyber attacks exploit weaknesses in external vendors, which means banks and insurance companies must monitor their vendors' security practices closely. Sinha pointed out that financial institutions often rely heavily on specific vendors for services. While this may seem minor financially, a breach could disrupt services significantly. He called for all financial regulators to work together to establish basic cybersecurity protocols. B.C. Patnaik, director of the National Insurance Academy, also spoke at the event. He noted that the new cybersecurity center demonstrates the academy's dedication to research and education in the field, especially as cyber threats continue to evolve.