More than 88 percent of client data breach cases last year involved employee negligence, and 84 percent of cases involved organizations with more than one incident, according to Steve Anderson, author of the Anderson Agency Report.
The report, Client Information Security, is directed at independent insurance agencies. Anderson indicates the average per-incident cost of a breach was nearly $6.7 million, including civil and regulatory penalties, administrative expenses, and legal defense costs.
"Information is the most radioactive element in today's businesses," says Anderson.
Insurance agencies of all sizes are treasure troves of personal client data, he adds, and they need to establish effective protective barriers and appropriate responses in case there is a breach.
The report explores the agency's weak links, including employee malpractice and negligence, theft of equipment, and external attacks, such as hacking. It aids agencies in categorizing what data to protect and gives more than 20 detailed steps on how to get a data-breach security plan up and running.
