Life insurers legal oversight of cyber risk and data security
Life insurers legal oversight of cyber risk and data security
https://law.asia/insurance-cybersecurity-data-protection/
Publish Date: 2026-05-05 22:48:00
Source Domain: law.asia
As cyber criminals gain sophistication, insurance companies have built a multi-layered line of defence to protect customer data and savings, writes Sanhita Katyal of Axis Max Life Insurance
As paper statements and branch visits get replaced by digital dashboards and mobile apps for customers, the trade-off is a simultaneous introduction of new, critical risks around security and unauthorised access of personal data.
In the life insurance sector, safeguarding the financial future of customers begins with safeguarding their data. Regulators across the world highlight in cyber-risk advisories that data is not simply an operational asset, but a fiduciary responsibility of insurers.
In tandem, the role of in-house legal and compliance officers at life insurance companies has evolved significantly in the past decade, particularly in an environment where digital transformation, heightened regulatory scrutiny and data-driven business models intersect.
Today, this function plays a critical role in interpreting and operationalising laws including the Digital Personal Data Protection Act, 2023, sector-specific Insurance Regulatory and Development Authority of India (IRDAI) regulations, and global data protection norms where cross-border processing is involved.
They guide business and technology teams on lawful data collection, purpose limitation, consent mechanisms and data retention practices. Importantly, they help balance statutory, regulatory and legal risks with commercial objectives, ensuring that customer-centric digital initiatives are compliant by design. In addition, they co-ordinate breach response, oversee disclosures, and ensure that remedial actions are sound and defensible.
Evolving threats
Life insurers hold vast volumes of personal information: policy numbers, medical histories, nominee details and financial data. Legal fiduciaries have underscored the importance of India’s Digital Personal Data Protection Act, 2023. It is universally…
