What Are GL20 Regulations and Why Do They Matter?

Cyber threats are a growing risk for insurers—especially in Hong Kong. In 2023, around 64% of financial firms in Asia reported a rise in cyberattacks, with insurance companies being a prime target. To combat this, Hong Kong’s Insurance Authority introduced GL20, a set of regulations to strengthen cybersecurity in the sector.

But what exactly are GL20 rules, and why should insurers care? Simply put, they ensure companies protect customer data, detect threats early, and stay prepared for breaches. Non-compliance is not just risky. It can lead to heavy fines and reputational damage.

Let’s break down GL20’s key requirements, why they matter, and how insurers can stay ahead.

Understanding GL20 Regulations

GL20 is a set of cybersecurity guidelines issued by the Hong Kong Insurance Authority (IA). It applies to all authorized insurers and aims to improve their ability to prevent, detect, and respond to cyber threats. These regulations help insurers protect sensitive customer data and maintain trust in the financial system.

Who Needs to Comply with GL20?

GL20 applies to all insurance companies operating in Hong Kong. To meet these requirements, they must follow strict cybersecurity measures, conduct risk assessments, and ensure proper governance. Senior management and IT teams must work together.

Here are the key components of GL20

• Cyber Resilience Assessment Framework (CRAF): Insurers must regularly assess their cybersecurity risks. They need to identify threats, test their systems, and improve security.
• Documentation Requirements: Companies must keep records of their cybersecurity policies and controls. They must report security incidents and show proof of compliance.
• Governance and Oversight: Senior management ensures cybersecurity policies are followed. Companies need a clear plan for responding to cyber threats.

GL20 helps insurers strengthen their cybersecurity defenses. However, achieving full compliance can be complex, requiring ongoing monitoring and risk assessments.

The Importance of Cybersecurity in the Insurance Industry

Cybersecurity is a primary concern for insurers. The insurance sector deals with sensitive customer data, including financial details and personal information. A single cyberattack can lead to huge financial losses, legal penalties, and damage to reputation.

1. Rising Cyber Threats

Cyberattacks on financial institutions have increased by 38% in the past years. Hackers target insurers because they store large amounts of valuable data. In 2022, a major Asian insurance company suffered a data breach affecting over 2 million customers. This shows how serious cybersecurity risks can be.

2. Regulators Are Taking Action

Governments and regulatory bodies are introducing stricter cybersecurity rules. The Hong Kong Insurance Authority (IA) created GL20 to protect insurers against cyber threats. Companies that fail to comply face fines, investigations, and loss of customer trust.

3. The Cost of Non-Compliance

Not following cybersecurity rules can be costly. The average cost of a data breach in the financial sector is around HK$40 million per incident. Besides financial losses, insurers may also face legal action and reputational damage, making it harder to gain new customers.

Cybersecurity is no longer optional for insurers. It is a key part of business operations, ensuring customer data stays safe and companies avoid costly breaches.

Challenges Faced by Insurers in Achieving GL20 Compliance

Complying with GL20 regulations is essential, but many insurers face challenges meeting the requirements. Cybersecurity is a complex field, and not all companies have the right tools or expertise to stay compliant.

• Complexity of Regulatory Requirements: GL20 has detailed risk assessment, governance, and documentation guidelines. Insurers must follow all rules and keep records of their cybersecurity efforts. Understanding and applying these regulations can be difficult, especially for companies with limited compliance experience.
• Resource-Intensive Processes: Meeting GL20 requirements takes time and effort. Companies must conduct regular security assessments, update policies, and train employees. Smaller insurers may struggle with this because they lack dedicated cybersecurity teams.
• Technology Gaps: Many insurers still rely on old IT systems not designed to handle modern cyber threats. Upgrading to advanced security solutions is necessary but can be expensive. Companies must also integrate new technologies with existing systems, adding complexity.
• Ongoing Monitoring and Risk Assessment: GL20 requires insurers to monitor their cybersecurity risks continuously. This means running frequent security tests, updating policies, and responding to new threats. Many companies struggle to keep up with these tasks while managing daily operations.

Meeting GL20 standards is difficult, but the right technology and compliance strategies can help insurers simplify the process and reduce risks.

How ComplyNexus Can Help

Meeting GL20 compliance can be difficult, but the right technology can make it easier. ComplyNexus offers smart solutions to help insurance companies manage compliance, reduce risks, and stay current with regulations.

1. Automated Compliance Management

ComplyNexus simplifies GL20 compliance by automating key processes. It helps insurers track cybersecurity risks, maintain proper documentation, and generate reports quickly. This saves time and reduces errors.

2. Cyber Risk Assessments

ComplyNexus helps insurers identify vulnerabilities and strengthen their cybersecurity with built-in risk assessment tools. The platform aligns with the Cyber Resilience Assessment Framework (CRAF), ensuring that companies meet all requirements.

3. Real-Time Monitoring & Alerts

Cyber threats change constantly. ComplyNexus provides real-time monitoring and alerts to help insurers detect and respond to threats quickly. This reduces the risk of breaches and ensures continuous compliance.

4. Easy Documentation & Reporting

Keeping records is a key part of GL20 compliance. ComplyNexus organizes policies, incident reports, and risk assessments in one place. This makes audits more manageable and ensures that companies always have the proper documents ready.

5. Cost-Effective Compliance

Many insurers struggle with the high costs of compliance. ComplyNexus offers an affordable and efficient solution that reduces manual work and improves security management. This allows companies to focus on their core business while staying compliant.

How ComplyNexus Makes GL20 Compliance Easier?

Meeting GL20 requirements doesn’t have to be complicated. ComplyNexus helps insurers in three simple ways:

• First, it explains the rules in plain language. The platform breaks down complex regulations into clear steps so you know exactly what to do without needing cybersecurity experts.
• It saves time on paperwork. Instead of manual reports, ComplyNexus automatically tracks your compliance progress and generates the required documents with just a few clicks.
• It also keeps you protected long-term. The system updates automatically as regulations change and continuously monitors for new cyber threats – giving you peace of mind that your defenses stay strong.

Stay Compliant and Secure with ComplyNexus!

GL20 compliance is necessary, but it doesn’t need to be stressful. With the right tools, you can protect your business while meeting all requirements.

ComplyNexus simplifies the entire process. It guides you step-by-step through each regulation, handles documentation automatically, and keeps your cybersecurity up-to-date. This means less work for your team and better protection for your customers.

ComplyNexus simplifies GL20 compliance with automated tools for risk assessments, cybersecurity monitoring, and regulatory reporting. Our platform helps insurance companies:

• Automate compliance tasks and reduce manual errors
• Perform Cyber Resilience Assessments (CRAF) to stay ahead of threats
• Streamline documentation for audits and regulatory submissions
• Monitor cybersecurity risks in real time and receive instant alerts
• Lower compliance costs with an affordable, tech-driven approach

Don’t wait until the next audit—strengthen your compliance today! Explore our solutions to learn how ComplyNexus can simplify GL20 compliance. Strengthen your cybersecurity and stay ahead of regulatory requirements with ease!