The recent increase in fraudulent activities within the insurance sector has raised significant concerns for the National Insurance Commission (NIC). Acting Commissioner of Insurance, Michael Kofi Andor, has emphasized the detrimental impact of insurance fraud, particularly the substantial financial losses it can inflict on insurers.
Mr. Andor highlighted the growing cyber risk associated with the digitization of insurance processes. He cautioned insurance companies to exercise vigilance as they embrace digital transformation, emphasizing the vulnerability to cybercriminals who have transitioned from traditional methods to exploiting digital platforms.
Furthermore, Mr. Andor pointed out the recent internet disruptions experienced across various networks, attributing them to the challenges associated with digitization. He stressed the importance of implementing robust measures to safeguard against cyberattacks, hinting at the NIC's forthcoming cybersecurity directive aimed at regulating the insurance industry.
In addition to cyber risks, Mr. Andor urged insurance companies to proactively address potential claims arising from climate-related issues. With 2023 being reported as the hottest year in history, he emphasized the need for insurance companies to strategize and prepare for the implications of climate change on their operations.
As the insurance industry continues to evolve through digitization and grapples with emerging risks such as cyber threats and climate change, it is imperative for insurance companies to prioritize the protection of their data and assets. The impending cybersecurity directive from the NIC signifies a pivotal step towards enhancing the industry's resilience against modern-day challenges.
In conclusion, Mr. Andor's remarks serve as a timely reminder for insurance companies to remain proactive in mitigating risks, embracing technological advancements while safeguarding against potential threats. As the industry navigates through these dynamic changes, a concerted effort towards cybersecurity and climate resilience will be crucial in ensuring sustainable growth and protection of policyholders' interests.
-source Adomonline | curated by Tetteh Belinda | Mydailyreports24
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