Insurers are increasingly flagging advanced Mythos-like artificial intelligence tools as an emerging cybersecurity threat, amid growing concerns that rapid digitisation across the financial sector is outpacing cyber preparedness, sources familiar to the matter told NDTV Profit.
The concerns have gained urgency after the Insurance Regulatory and Development Authority of India (IRDAI) asked insurers to submit a detailed report on AI-linked cybersecurity preparedness by May 22.
According to people aware of the discussions, insurers have raised concerns around poor asset visibility, weak monitoring systems and gaps in cyber-risk detection frameworks that could expose institutions to sophisticated AI-enabled attacks.
Sources said companies are particularly worried about vulnerability chaining, a process where multiple system weaknesses are exploited simultaneously, potentially triggering large-scale breaches across interconnected digital infrastructure.
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Industry executives and cyber experts have also flagged the lack of robust domestic AI models as a key challenge in strengthening cyber resilience. According to sources, the absence of India-focused AI infrastructure is limiting the ability of insurers and financial institutions to adequately test and simulate emerging cyber threats.
At the same time, the use of foreign AI tools faces hurdles linked to India's evolving data localisation requirements and regulatory scrutiny around sensitive financial data, sources added.
Around 15 to 20 insurers and banks are currently exploring AI-led cybersecurity infrastructure and advanced threat-detection systems as part of broader efforts to strengthen digital resilience, according to sources.
The developments come as financial institutions accelerate technology adoption across underwriting, claims processing, customer servicing and fraud detection, increasing concerns over the sector's exposure to next-generation cyber threats.
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