By Nilesh Parmar, COO & CTO, Future Generali India Life Insurance
Powered by the government’s flagship Digital India initiative, the number of internet subscribers in India has already surpassed the 950 million mark, with more than 95% of the country’s villages now having internet access. As a result, an increasing number of Indians are now transacting online and businesses are responding to this trend shift by augmenting their digital sales channels to increase customer engagement. Similarly, firms are constantly upgrading their data privacy standards and implementing stringent cyber security measures to build greater trust and forge lasting relationships with their online consumer base. What’s more, by allowing customers greater control over how their personal information is stored, shared or used; companies are empowering consumers to unlock the full range of benefits offered by India’s rapidly expanding digital financial landscape.
Need for Data Privacy standards in the Digital age
As per the Internet Freedom Foundation’s (IFF) cybersecurity report for Q3 2024-25, there have been as many as ten serious data privacy breaches and vulnerabilities that have impacted both private sector companies and public institutions at large. In many instances, the acting cyber criminals were offering to sell the personal data of millions of Indians on the dark web, underscoring the need for organisations to urgently mitigate data privacy risks by prioritising proactive cybersecurity measures that could thwart any future attack. Similarly, it is vital that businesses take accountability for any data privacy breaches, deal with the matter transparently and proactively inform their customers so that they can in turn take appropriate remedial actions. Towards this end, the Digital Personal Data Protection (DPDP) Act of 2023 has mandated the same, with defaulting organisations liable to face penalties as steep as ₹250 Crores if found to be operating without enforcing robust security measures. Moreover, according to the DPDP Act, life insurance companies must obtain explicit consent from their customers towards collecting, processing, and storing their personal information; while also granting them rights to access, rectify, or erase their data as per their wish. As a result, customers remain the ultimate beneficiaries as life insurance companies are legally mandated to build robust mechanisms around data security, integrity and privacy; with the IRDAI Information and Cyber Security guidelines providing in-depth guidance on how to enforce the DPDP Act from an insurance perspective.
How DEPA is facilitating greater trust, assurance and consumer empowerment
In conjunction with the Reserve Bank of India’s (RBI’s) Account Aggregator (AA) model and other layers of the India Stack being built since 2010, the Data Empowerment and Protection Architecture (DEPA) launched in 2020 is powering financial inclusion at a never-before-seen rate. This secure consent-based data sharing framework not only provides Indian consumers with greater control over how their personal data is used across the country’s various digital and financial ecosystems; but also supports them in leveraging their digital histories to access a wider range of financial services. Thus, DEPA is metamorphosising an ever-evolving regulatory and technology design that is providing consumers with unparalleled assurance, creating greater trust and empowers them with several financial opportunities across India’s various financial ecosystems. Consequently, Indian consumers can expect more affordable financial services being delivered in the foreseeable future, while benefitting from higher data privacy standards and greater control over what information they share when transacting digitally.
Envisioning a secure future digital landscape that empowers Indian ambitions
As the country’s various regulatory institutions double down on implementing measures to fortify India’s data privacy and cyber security standards, increasing integration of different frameworks such as DEPA, AA and India Stack amongst others should empower consumers with an even more secure and fulfilling digital purchase experience. For organisations and businesses compliant with these standards, they will be able to access digital transaction histories created by millions of Indians and accelerate the pace of digital innovation to introduce products and services that can cater to the needs of India’s diverse population. This is especially true for the life insurance sector, where uber-customisation can lead to highly attuned life insurance products that can also be delivered digitally to consumers hailing from even the remotest parts of the country, without the need for physical visits or documentation. Not only can this improve insurance coverage by seizing distribution, technology and product-based opportunities presented by India’s demographics, but also realise the larger mission of ‘Insurance for All’ by 2047 and secure a vital social security net for the country’s burgeoning population.