Cybersecurity for Insurers, tools and best practices

Key takeaways:

• Insurance companies are prime targets for cybercriminals due to the economic value they possess and the sensitive data they hold.
• The human vulnerability being at the origin of the vast majority of successful cyber-attacks, employee education and training are essential to repel most fraudulent tentative.
• Modern insurance platforms strengthen cybersecurity further, leveraging advanced technologies and best practices.

In the current era of digital advancements, cybersecurity for insurers holds immense significance. Insurance companies are prime targets for cybercriminals due to the economic value they possess and the sensitive data they hold. As guardians of valuable customer information, insurers bear a heightened responsibility to safeguard personal data from constantly evolving cyber threats. By implementing robust cybersecurity measures, insurers not only protect themselves but also prioritize the security and trust of their customers. This proactive approach helps maintain client confidence and prevents the potentially costly consequences of data breaches and other cyber incidents.

IBM Security and Ponemon Institute measured the average cost of a data breach to be $5,6 million in 2021; with expenses related to incident response, investigation, customer notification, legal support, and regulatory compliance. Phishing and social engineering attacks are prominent in the insurance industry with 96% of phishing attacks involving credential theft, as indicated by the 2021 Verizon Data Breach Investigations Report. These attacks typically exploit human vulnerabilities, leading to unauthorized access to sensitive data.

In this blog post, we will discuss the good practices that insurers can implement to face off against cyber threats effectively. We will also delve into how modern insurance platforms are enhancing cybersecurity to protect customer data and build trust in the digital landscape. A cyber incident is the result of laxity and lack of action.

Below are 4 best practices that turn cybercriminals’ lives more difficult:

1. Employee Education and Training:

The human vulnerability being at the origin of the vast majority of successful cyber-attacks, employee education and training are essential to repel most fraudulent tentative. Regular training sessions will educate employees about common attack vectors, phishing emails, social engineering techniques, and the importance of following security protocols. This empowers employees to act as a strong line of defence against cyber threats.

2. Robust Access Controls and Authentication Mechanisms:

Implementing strong access controls, including multifactor authentication and user permissions management, ensures that only authorized personnel can access sensitive data, and reduces the risk of data breaches.

3. Proactive Risk Management:

Conduct regular risk assessments to identify vulnerabilities and potential attack vectors within the organization’s infrastructure. Implement proactive monitoring, intrusion detection systems, and vulnerability management to promptly detect and address security weaknesses.

4. Incident Response and Business Continuity Planning:

Develop a comprehensive incident response plan to guide the organization’s actions in the event of a cyber incident. This plan should include protocols for containing, investigating, and recovering from cyber-attacks. Additionally, create and test business continuity plans to minimize disruption and ensure a swift recovery.

How does a Modern Insurance platform strengthen security and reduce the risk of cyberattacks:

1. Robust Infrastructure and Secure Development:

Modern insurance platforms are constructed upon a foundation of secure infrastructure that encompasses encryption protocols, firewalls, and intrusion prevention systems. Furthermore, these platforms adhere to secure development practices, including periodic code reviews, rigorous penetration testing, and a steadfast commitment to industry standards such as OWASP (Open Web Application Security Project).

2. Continuous Monitoring and Threat Intelligence:

These platforms employ advanced real-time monitoring tools and technologies to detect and respond to cyber threats. They leverage threat intelligence sources to stay updated on emerging threats, ensuring timely mitigation, and preventing potential breaches.

3. Data Encryption and Secure Transmission:

Contemporary insurance platforms incorporate robust encryption algorithms to safeguard data both at rest and during transmission. This ensures that the compromised information remains incomprehensible and unusable to unauthorized parties in the event of a data breach.

4. Emphasis on Vendor Management and Security Assessments:

Insurance platforms understand the importance of scrutinizing their vendors and partners. They conduct thorough due diligence and assessments to ensure that third-party providers maintain high cybersecurity standards. This proactive approach helps minimize potential vulnerabilities arising from external dependencies.

5. Implementation of User Access Controls and Authentication Mechanisms:

In the realm of modern insurance platforms, strong user access controls and authentication mechanisms are put in place to ensure that only authorized individuals can access sensitive data. These encompass multifactor authentication, role-based access controls, and the enforcement of stringent password policies. Through these measures, platforms minimize the risk of fraudulent access and data breaches, fortifying the overall security posture.

6. Adoption of Incident Response and Business Continuity Planning:

Insurance platforms recognize the inevitability of cyber incidents and prepare accordingly. They have comprehensive incident response plans in place, which outline the steps to be taken in the event of a security breach. These plans facilitate a swift and organized response, minimizing the impact of an incident. Additionally, platforms develop, and test business continuity plans to ensure that essential operations can continue seamlessly during and after a cyber incident.

In conclusion, modern insurance platforms employ a range of advanced technologies and best practices to enhance cybersecurity. Through robust infrastructure, continuous monitoring, encryption, vendor management, user access controls, and incident response planning, these platforms strive to safeguard sensitive data and protect against cyber threats. By adopting these measures, insurance platforms bolster their security posture and inspire trust among their customers in an increasingly digital world.