India – Max Financial Services Ltd. has reported a potential cybersecurity incident at its subsidiary Axis Max Life Insurance, after receiving communication from an anonymous source alleging unauthorized access to customer data.
The company stated that it has initiated a comprehensive security assessment and data log analysis to determine the nature and scope of the possible breach. Axis Max Life Insurance is a joint venture between Max Financial and private sector lender Axis Bank.
This development adds to a growing list of cybersecurity concerns plaguing India’s financial services sector. Over the past 10 months, major players including Angel One, Niva Bupa Health Insurance, Star Health, and HDFC Life Insurance have all reported serious cyberattacks or data compromise incidents.
In response to the growing threat landscape, India’s insurance regulator had earlier instructed companies to conduct industry-wide IT audits to strengthen digital infrastructure and data protection practices.
According to government data accessed by Reuters, cyber fraud cases in India surged over four times in FY2024, leading to reported losses of nearly $20 million. Since 2021, Indian consumers have lost an estimated $1.26 billion to cyber fraud involving financial institutions.
While Max Financial has not yet disclosed how many customers may be affected or the type of data involved, the investigation is ongoing, and further details are expected to be released as findings emerge. The incident highlights the urgent need for robust cybersecurity and data governance in India’s rapidly digitizing insurance sector.
