Cyber Security in Insurance

Insurers need to boost their security knowledge within the growing risk of cyberattacks.

As the new technology progresses, hackers progress too and, so, there is the possibility of incurring in some Cyber Security attack.

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In this case, the first response might be to hunt down the perpetrator. While this might provide closure, pinning down the source of the breach will do little to protect the business from future hacks. Further, the process of finding the responsible party will cost a lot of time and effort that could be better spent on boosting security.

Instead of wasting resources on searching for the cyber-criminal, focus on identifying the vulnerability that led to the attack and exactly which information was affected. It does not matter who did it!

The process of analysing cyberattacks will evolve to take on more of a big-data approach. The quality and speed of cyber threat analysis will increase, and cost will decrease, as the use of real-time analytics spreads across structured and unstructured data sources.

Businesses are becoming increasingly more aware of the risks inherent to working with third parties. Now, they are under fire to address and manage this risk. In the future, there will be more insurers actively monitoring third parties instead of undergoing less reliable self-certification. Instead of being pushed to the side, security will become priority as protective measures are built into third-party products and services. Upgrades and testing procedures will also be enforced.

It is essential to communicate with customers before, during, and after a data breach.

In the aftermath of a data breach, executives may be tempted to withhold information until they believe they have all the answers they need. The problem is, customers do not expect insurers to have all the answers right away, and those answers might take a long time to find. So long as the company shares information as it receives it, and is openly working with authorities to investigate the breach, customers will be more accepting.

The sophistication of today’s hackers is escalating quickly because they work together to share tactics. Insurers, which primarily operate on their own when it comes to security, are moving comparatively slowly in developing protective strategiesWhile insurers have traditionally kept to themselves, it may be time to consider more open communication with other financial institutions facing the same risks.