The National Insurance Commission (NIC) has expressed concerns about the recent upsurge in fraudulent activities and its consequential impact on the insurance sector.
Acting Commissioner of Insurance, Michael Kofi Andor, underscored the gravity of insurance fraud, highlighting its potential to inflict considerable financial losses on insurers.
“I know some of you chat people online, some of you have a chatbox, WhatsApp, AI applications and what have you, we are digitizing a lot of things and what that brings to us is a cyber risk. As we keep digitizing more things, we get exposed to the criminals who have now put down the gun and have taken the computer and are robbing with it”.
Mr. Andor thus tasked insurance companies to exercise caution in their efforts to grow and develop the insurance market, particularly as they continue to digitize their records, exposing themselves to cyber risks.
Referencing the recent internet disruptions witnessed across various networks, he revealed that everything was at a standstill due to digitization.
“When I was coming it took hours for us to be checked in at the airport the internet was down, these are the risks we face with digitization, though it’s a good thing, it comes with its risks “.
He urged insurance companies to find ways to protect their data from cyberattacks, as the governing body prepares to issue a cybersecurity directive to regulate the insurance industry.
“I know some of you are putting controls in place to protect you, but the NIC is coming up with the cybersecurity directives, these are things you’re expected to do to protect the business because if you go down, the policyholders’ interest is jeopardized” Mr. Andor said.
Regarding climate change, the Acting Commissioner urged insurance companies to strategize to address potential claims resulting from climate-related issues.
“We have been told that 2023, is the hottest year in the history of the earth and it is telling on everything we do as insurance companies.”