Page 13 - The Insurance Times December 2024

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other activities. The development
HDFC Life Insurance Reports Data Breach underscores the increasing scrutiny on

HDFC Life Insurance recently disclosed a data breach, adding to the growing compliance in the financial sector,
list of Indian insurers facing cybersecurity threats. The breach, revealed in urging insurers to maintain meticulous
a regulatory filing, prompted the company to launch an extensive records to avoid such penalties.
investigation with information security experts to safeguard customer
interests. LIC Agents Oppose
The insurer stated that an unknown source shared certain customer data Clawback Norms
fields with malicious intent. To address the situation, HDFC Life has initiated The introduction of clawback norms for
a thorough "information security assessment and data log analysis" to prematurely surrendered policies has
identify the root cause. The company emphasized its commitment to sparked protests among LIC agents.
protecting customer data and taking necessary actions to mitigate risks, Under the new guidelines, agents must
highlighting the growing importance of cybersecurity in the insurance sector. return their commissions if policyholders
surrender their policies shortly after the
AU Small Finance Bank solutions. This move aligns with the first premium payment.
bank's broader strategy following its Agents argue that the policy is unfair
Partners with Bharti AXA application for a universal banking and increases their financial burden.
Life Insurance license, showcasing its commitment to They have also criticized reductions in
AU Small Finance Bank (AU SFB) has providing holistic financial services. first-year commissions, demanding a
partnered with Bharti AXA Life reversal of these changes. The agents'
Insurance to offer a comprehensive LIC Receives GST Demand federation has warned of nationwide
range of life insurance and financial strikes if their demands are not
security solutions to its customers. Notice for Rs. 65 Crore addressed, reflecting the growing
Through this collaboration, AU SFB The Life Insurance Corporation of India discontent within the industry.
customers gain access to Bharti AXA's (LIC) has received a GST demand notice
diverse portfolio, including term amounting to Rs. 65 crore for the Jio Financial in Talks with
insurance, ULIP plans, savings plans, fiscal year 2017-18. Additionally, the
and retirement schemes. tax authorities imposed a penalty of Allianz for Insurance Joint
Rs. 6.5 crore along with applicable Ventures
This partnership is strategically aimed
at expanding AU SFB's offerings, interest. The demand pertains to short Jio Financial Services, owned by
especially in Southern India, by payment of Goods and Services Tax in Mukesh Ambani, is reportedly in
leveraging Bharti AXA's expertise. With the state of Jharkhand. discussions with Allianz SE to form new
over 1 crore customers, AU SFB is also LIC clarified in a regulatory filing that insurance partnerships in India. The
enhancing its bancassurance portfolio the notice would not significantly proposed joint ventures would
with cutting-edge, technology-driven impact its financials, operations, or establish separate general and life

The Insurance Times December 2024 13