Technology Reshaping the Future of Cybersecurity in the Insurance Industry

By Insurance CIO Outlook | Tuesday, August 13, 2019

 Future of CybersecurityCyber insurance has improved and will continue to grow, becoming an important component of cybersecurity strategies in the public and private sectors.

FREMONT, CA: Each passing year, cybercrime incidences are gradually increasing. IT trends drive developments in cybersecurity for insurance. Dramatic changes are reshaping the insurance industry, and forward-looking insurers are not just watching this happen, but take action and make investments to assist them in becoming more customer-centric, enhancing pricing, and generating operational efficiencies. Here are a few developments in technology that will shape the insurers' secure future.

Data Veracity: The Importance of Trust

Insurers are not unfamiliar with using data to create more informed company decisions, and the proliferation of data today implies ample chance to fine-tune risk evaluation, pricing, and marketing choices. Inaccurate, manipulated, or biased information may result in corrupt company ideas or skewed decisions— not just for the insurer, but for society as a whole. Validating and protecting data is more essential than ever for cybersecurity teams. Moreover, all retrieved information becomes suspicious in the wake of a cyberattack. Insurers need information reconciliation and validation procedures, ideally back to immutable recording schemes like blockchain technology.

Frictionless Business

The legacy systems of insurers are not forced to work together rapidly, and on a scale, so many insurers are re-architecting with techniques such as microservices (such as APIs), blockchain, and smart contracts. But these techniques only succeed in their backbone with robust safety.

Intelligent Distributed Systems  

As intelligent linked devices continue help insurers use device information to comprehend risk and pricing better and avoid hazards. These systems are all susceptible to compromise, and hence, insurers will need new analytics and safety checks tools. Insurers can recognize and protect against criminals who manipulate information for fraudulent use by ensuring the integrity of the information stream.

Finally, insurers need to create adequate cyber resilience investments. Cyber risk is rapidly developing, and insurers must maintain pace with the tactics and techniques of cybercriminals. Preparedness helps strengthen defense to keep up with cybercrime developments continuously. And crucially, safety is not something that can be siloed to a single department or the C-suite: insurers must embrace a culture of "safety first."

Check out: Top Reconciliation Platform Solution Companies

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