Irdai directs two insurers to conduct IT systems audit over data leak concern

Following concerns over the recent instances of policyholders' data leaks, the Insurance Regulatory and Development Authority of India (Irdai) has asked two insurers to carry out audits of their IT systems. The regulator is also in touch with their management to address the vulnerabilities.

Irdai asserted that it will continue to engage with the companies to ensure that the policyholders' interests are fully protected.

While Star Health Insurance that had recently admitted data breach possibly be one of the insurers, the name of the second insurer could not be immediately ascertained.

"There have been reports of data leaks from two Insurers recently," the regulator said.

In a release, the Irdai said it is closely monitoring the situation in the case of the concerned insurers and has been in touch with their management.

"The concerned insurers have been instructed to appoint an independent auditor to undertake a comprehensive audit of the company's IT landscape with the aim that there are no vulnerabilities and the IT system are adequate to meet the scale and complexities of their operations," the release said.

It further added that as part of the standard operating procedures of the concerned insurers, they reported the cyber incident to the government and Irdai.

It also said the concerned insurers have ring-fenced the impacted IT system by isolating it and at the same time, appointed an external IT security company to undertake root cause analysis.