The insurance industry today is all about the handling of information security because that is the backbone of the digital age. As confidential details of the users pass through the insurance mechanisms, the right technology has to be in use, and technology should be responsibly used.
Such responsible handling of information by technology is what would make a customer feel compliant and trustful. Information protection and recognition are the key areas of the industry and will be for all professionals in insurance and technology.
The blog will frame the spotlight on the risks of data security for insurance technology, while the importance and the best practices in protecting sensitive information will also be scrutinized. Apart from that, we are going to be discussing the future of data protection in the insurance sector.
This one is a guide that gives you some knowledge about what you can do in the insurance industry and how you can use data security. The guide aims to educate you on the importance of data security in the insurance industry.
Being digitalized, insurance is more beneficial with a number of pros aside from the dangers associated with this risky development. Here are the areas that insurance technology is more prone to be attacked by now.
Cybersecurity criminals are always on the watch for vulnerabilities and want data. Data breaches may say goodbye to the branding of a company as well as it may have financial and health records stolen. Worldwide criminal and financial losses from the breach of data are expected to be £4.3 million, according to IBM's Cost of a Data Breach Report in 2023. This reflects the economic impact of internet threats.
Phishing is actively used by the black hats in gaining unauthorized access to the targeted system or personal devices. An insurer could be hacked by bad actors when they target workers with deceptive emails and threatened emails.
Outdated software, weak document and network settings are among the common ways that hackers can exploit vulnerabilities. Outdated systems that often cannot cope with new cybersecurity threats are the ones that increase the risks.
The deceit that causes the most damage can result from an employee who perhaps has no evil intentions. Insider threats, no matter whether it is a deliberate or accidental event, can be the cause of data breaches and loss of sensitive data. Incorporating this understanding into your actions will help you to remain proactive with your data protection strategy.
The insurance industry has not escaped the grip of the data protection laws. Compliance with regulatory requirements is one of the most important aspects of data security, especially for organizations dealing with sensitive customer information. Check out the following insurances regulations and standards enforcement mechanisms.
GDPR is mainly tasked to provide a set of guidelines for companies that control or process data of EU citizens. The main objective is to make sure that the activities you carry out with the user data are always transparent and secure. Not complying with the regulation may lead to penalties as high as £17.5 million or to 4% of the turnover - whichever is higher.
HIPAA is a U.S. health data privacy protection directive called the Health Insurance Portability and Accountability Act. It requires privacy and data protection to be made to very high standards.
When it comes to online payments processing, the company will only be able to trade if it complies with the Payment Card Industry Data Security Standard. The PCI DSS is a safeguard against the data breach when a transaction involves the exchange of money.
There are various data protection laws, like the UK Data Protection Act (DPA) and Canada's PIPEDA. For compliance, companies must carry out an analysis of the relevant regulations in their area. By showing the regulators your ethical core value of data protection, you can never be wrong. This method also serves as a guide for the customers as to how they should perceive you in terms of reliability.
Where do you begin? Here are some stuff that will kick-start you.
In the course of the operation of the system, each component has to be annually evaluated for vulnerabilities and robustness. It is able to keep the system breach-free even if the patching process has been delayed.
The so-called human factor is among the top reasons for the developments of the systems. Lay a strong foundation of resistance and NO to phishing attacks.
When you implement block ciphers cryptography makes your communication channel solid. It ensures that no one else can have access to the sensitive information unethically even if the system is breached. Through tokenization, sensitive data is replaced with a non-identifiable value that cannot be decoded.
MFA is a great idea not only for your end-users but also for your central users and data holders. MFA combined with other features protects your reboot activities from unauthorized persons who may have passwords.
Consider the services of a cyber protection company to monitor your systems continually, be proactive and reduce data risks through personalized security measures. Engage their expertise to smoothen the way as you recalibrate your threat management processes.
Security in the modern world now and the future is actually more of tech evolvement that simply needs to keep up to date with this ever-advancing road. The latest trends and technological advancements are some of the contents that will contribute to the shaping of the future of this industry.
AI has definitely changed the modus operandi of companies that want to identify and respond to cyber threats. By using machine learning and artificial intelligence, it is possible to detect any extreme deviations from the usual trend of patterns to fend off potential threats.
Not even the users can be considered as reliable security advocates within your system. You are always having to verify registration at all levels to make security violations a myth.
Blockchain is an unchangeable record that is both public and very secure. If it is to become a fact, its use might be a turning point leading to honest and verifiable transactions and storages of data making it less susceptible to invalidation.
While it might still be very early and only in some stages, Quantum Cryptography is a tool that is solving the current encryption dilemmas in ways that have never been accomplished. What it would do is to change the way insurance companies safeguard their customer's data, besides effectively fighting cyber threats. The new insurance policies will help insurers leading the industry while keeping the high standards of data security.
The insurance companies' data security approach should not be solely aligned with the regulatory requirements. It should also involve empowering the future and building trust with customers. By applying rational methods and strategic planning, you are able to meet these requirements while maintaining a strong relationship with partners.
If you are an insurance professional or a business leader who sees the upcoming risks in the market, take these steps to fortify your defenses. You will be able to profit from new opportunities by protecting sensitive information and winning back the market edge. Thanks a lot for your hard work on the exercise.
