Data Security Challenges in Financial Service and Insurance Industry: An Analysis of Data Protection, IoT and IT Infrastructure Factors

In the era of digital transformation, data security is a critical concern for the Financial Services and Insurance (FSI) industry, where sensitive customer and operational data are constantly at risk from cyber threats. This study explores the key challenges related to data security in the FSI industry, focusing on three core areas: data protection, the Internet of Things (IoT), and IT infrastructure. Based on Oprimary data gathered by conducting surveys among 150 industry members and secondary data from literature, the present research finds data management vulnerabilities, IoT integration, and IT system vulnerabilities. The research reveals that although encryption technologies and regulatory regimes make information more secure, the vulnerabilities in IoT devices and dispersed IT infrastructure are very real threats. The report calls for embracing robust security controls such as advanced encryption, real-time monitoring, and adaptive IT infrastructures to meet the challenges. This research presents pragmatic advice and a strategic plan for improving data security practices of Indonesia’s FSI sector towards regulation compliance, resilience, and trustworthiness in an increasingly interconnected digital era.