To prevent fraudulent activities in the insurance business, the Insurance Regulatory and Development Authority (IRDA) has asked insurers to follow stringent due diligence process for staff and agents besides identification of vulnerable areas within an organisation. The communication, sent out to chief executives of all insurance and reinsurance companies, comes against the backdrop of concerns about financial frauds that could hurt the interests of customers as well as insurers. Fraud in insurance reduces consumer and shareholder confidence; and can affect the reputation of individual insurers and the insurance sector as a whole.