Do you think your Insurance company is out of the radar of cyber attacks?
As technology advances, so do cyber threats, and insurance companies are not immune. Insurance providers are prime targets for hackers due to the vast amounts of sensitive customer data they handle.
To ensure cyber security for insurance companies they comply with all applicable laws, rules, and standards and to better protect their client’s personal information. In this blog, we will walk you through the top data protection best practices that insurance companies can implement to keep their customer’s data secure.
Types of Data Insurance Companies Work With
To better underwrite risks and serve their clients, insurance companies process their customers’ personal information. Only with complete and accurate information from customers, insurance businesses can create viable and sustainable products & services.
Information regarding clients’ health and criminal records. For example, it is necessary for insurance companies to implement risk-based premium pricing and handle claims. An employment contract serves as the legal basis for insurance coverage issued on behalf of an employee.
Insurers acquire a wide variety of personal information from their customers, including details about their health, their homes, their cars, and even their pets, depending on the services they offer. The most common forms of private information in the insurance sector are as follows:
Breaches of Data Protection in the Insurance Sector
In the Insurance industry, cyberattacks frequently don’t target systems but rather negligent personnel and subcontractors.
Verizon’s 2022 Data Breach Investigations Report found that phishing, credential theft, and ransomware assaults were the most prominent forms of an external attack against businesses in the insurance and banking sectors.
Employees frequently err, for example by incorrectly conveying crucial information. Insurance fraud can also be committed by malicious insiders who hope to gain financially by cheating their company.
Some recent high-profile insurance data breaches are as follows:
- In October of 2022, a significant data breach occurred at Medibank, an Australian health insurance provider. The incident began with the theft of credentials from a user with administrative privileges within the Medibank network. The compromised credentials were later sold on the dark web and used to get access to private information belonging to Medibank’s customers. The outcome was that 200 GB of data, including the personal information of 9.7 million Medibank members, was stolen.
- The American insurance company Aflac Inc. had a data breach in January 2023 due to a vendor’s flaw. The data of 1.3 million people with cancer insurance in Japan were stolen by hackers. Names, ages, and genders of policyholders, as well as the types of insurance they held, were among the compromised data.
- Zurich Insurance Group had a data breach involving a third-party contractor almost simultaneously with the Aflac incident. Over 757,000 current and former auto insurance policyholders had their information exposed due to the incident. It’s possible that details such as last names, gender, birth dates, email addresses, vehicle makes and models, and more were shared.
Loss of trust from customers and severe fines are possible outcomes of data breaches. Even insurance companies could be put in danger. This is the reason why cyber security in insurance is important.
Insurance Company Security Requirements
Insurance companies are subject to severe penalties for failing to comply with data privacy regulations. Let’s take a look at the primary acts, standards, and laws that mandate cyber security in the insurance industry.
The following regulations must be met by businesses that collect and process personal information to sell insurance policies:
To protect personal data:
To protect healthcare data:
To protect financial data:
5 Essential Strategies for Data Protection Compliance in the Insurance Sector
1. Build a Risk-Aware Culture
2. Defend the Workplace
3. Regularly Backup all Your Data
Whether your valuable data is stored on-premise or in the cloud. It is critical to prioritize its protection by employing a reliable backup and recovery solution that meets or exceeds the expectations of your business. In recent times, a substantial number of companies have opted for cloud-based applications like Google Workspace, Salesforce, and Office 365.
Nevertheless, many remain oblivious to the fact that SaaS providers primarily focus on restoring data lost due to system failures. These are often incapable of recovering data that has been deleted accidentally or deliberately by users, or locked by ransomware, hacking, malware, or similar threats. To prevent the consequences of data loss and downtime, it is imperative to incorporate automated SaaS data backup systems. These systems will provide point-in-time restore features into your business operations.
4. Security By Design
5. Control Network Access
Personal identifiable information (PII) is held by insurance companies for nearly every individual, and these establishments must protect this data and have comprehensive security measures in place. However, an analysis by Accenture found that 55% of insurers lack confidence in their ability to effectively monitor unauthorized access attempts.
Agile Soft Systems’ custom insurance software development services in USA, can assist insurance companies in safeguarding against cyber attacks by providing customized security solutions that address their specific needs. Our team of experts can conduct a thorough risk assessment to identify potential vulnerabilities and implement proactive measures to prevent breaches. Contact Agile Soft Systems at +1(510) 679-6791 or [email protected] to learn how we can help your insurance company protect against cyber attacks and safeguard your customers’ personal information.