Cybersecurity Drifts: Now a Part of Insurance Buzz Too!

By Insurance CIO Outlook | Thursday, June 27, 2019

Cybersecurity DriftsIn the cyber battle, how are insurance companies faring, and what should their action priorities be?

FREMONT, CA: Cybersecurity is one of these, which is never far from the headlines. The attacks appear to continue to come. For example, in May 2017, the WannaCry ransomware attack affected more than 200,000 systems worldwide. Globally, it is now estimated that cybercrime costs $400b a year, meaning cyber threats are among the top problems that companies need to consider when it comes to their resilience and continuity planning. The fast pace of change in digital space is what makes cyber dangers so challenging to cope with.

Check This Out: Top Cybersecurity Companies

Every day, insurers handle huge hazards with confidence. The entire company of insurers is a type of risk management. But the industry may have lagged behind other financial services industries–particularly banking–in cyber investment, concentrate, and capacities when it comes to cybersecurity. This was partly due to necessity: banks were pummeling through cyber-attacks and required to rush to safeguard their reputations, clients, and bottom lines. The cyber war on the insurance front has traditionally been much quieter.

Latest cybersecurity breaches should serve as a stern wake-up call to reinforce their cyber defenses for insurers as well as other financial institutions. Regulators and businesses in the private sector both need to redouble their attempts and be aggressive in helping to protect this customer information. Most individuals might expect bigger insurers to boast solid cyber-security programs due to the delicate client data they manage. That's not necessarily the case.

The growing focus on shifting client interactions to digital channels implies powerful cybersecurity discipline is more crucial than ever as it offers an attack target for cybercriminals. Insurers have a wealth of individual information points–across their health information, assets, cars, and other vehicles, including their animals. If banks hold the cash, the data is held by the insurers. Therefore, fraud of identity is an important threat. Cyber attackers will move to the point of least resistance–as banks reinforce their defenses, they may, among other things, concentrate on the insurance industry.

Insurers tend to look instantly at their company hazards and threats. An operating model that utilizes values, critical resources, and outsourced agreements could be helpful, with reviewing the risk culture and cyber risk appetite in conjunction with evaluating the hazards while considering compliance problems concerning cyber-related governance procedures.

Few Cybersecurity Companies: Armor, FireEye, Inc, MobentIT

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