When Insurance Industry Is Under Compulsion To Design Robust Cyber Security Strategies

CIOReviewIndia Team | Wednesday, 12 February 2020, 03:52 IST

When Insurance Industry Is Under Compulsion To Design Robust Cyber Security StrategiesAs far as insurance industry is concerned cyber security plays a vital role considering the highly sensitive business information of the insurance firms. Given the proliferation of digital technologies, business operations in the industry have largely gone digital to achieve better agility. As insurance companies are moving towards adoption of digital platforms, cyber attacks in the industry are growing like never before. The emerging digital technologies are demanding from insurers advanced security strategies to counter the increasing data breaches and other forms of cyber attacks.        

Data Collection and Analytics- No Longer an Easy Task

Unfortunately, the challenges for the industry in terms of cyber attacks are only going to increase as businesses in the industry are embracing the latest technologies such big data and data analytics which involves collection of large volumes of data.  When it comes to data collection and handling of data in the insurance industry, it is always a challenge for insurers not because of the volume of data but due to sensitivity and personal nature of data. Increased digitization has not only made the process of data collection easier, but also increased the attack surface of the customer data, putting the privacy and security of data at stake. Hence, insurers need to be very cautious while performing risk assessment, which is primarily concerned with customer data collection. “As with all data security, security comes down to designing and effectively implementing robust systems in order to minimize the company's attack surface to hackers. This includes strictly limiting employees' access to sensitive records and deploying robust security measures such as biometric two-factor authentication for personnel who are authorized to access sensitive records. It also includes deploying a thorough auditing system to monitor files that have been accessed, and which thoroughly investigates any anomalies or violations that are discovered. When staff members are discovered to have breached security protocols, meaningful sanctions must be enforced to ensure that protocols are followed correctly,” opines Douglas Crawford, Security Researcher at ProPrivacy.

As insurance companies prepare to design more tools to collect and analyze data so as to derive business insights, they are also advised to orchestrate robust cyber security strategies to safeguard the data from cyber attacks.

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