When partnering with a new vendor, insurers should always inquire about how their products stack up when it comes to cybersecurity before implementing the new technology. (Credit: Pira25/Shutterstock.com)
The fact that insurance is a lucrative industry, where companies have large amounts of customers' private information, makes it a prime target for cybercriminals. As insurers implement new technology to supplement their customer experience, it creates even more chances for hackers to find holes in a company's security, leaving it vulnerable to attack.
It can be easy to get overwhelmed by the growing number of cyber threats, so where should insurers focus to best protect themselves and their customers?
Third-party exploits
As new Insurtech emerges, insurers are utilizing third-party vendors in order to implement new client offerings. While insurers may have a handle on their company's digital security, it may not always be clear if a vendor has the proper security measures in place, which can leave sensitive information vulnerable to hackers.
When partnering with a new vendor, insurers should always inquire about how their products stack up when it comes to cybersecurity before implementing the new technology.
Ransomware
Ransomware is a type of malware used by hackers to secure ransom money from their target —often by holding a company's valuable data and assets hostage until they are paid. This type of attack can begin with something as simple as a phishing email. If an employee clicks on a tainted link or attachment, it can allow hackers to breach the company's system and gain access to their data.
What makes ransomware even more of an issue is that, while companies may be able to recover their data without actually paying any money, hackers can still access their systems and cause all kinds of chaos, including financial loss and damage to a company's reputation.
To prevent breaches that lead to ransomware attacks, insurers should ensure employees practice discretion when clicking links or attachments in emails, train employees to spot suspicious emails, ensure all operating systems and security software are updated and back up all of their files on a regular basis.
Cloud exploits
It seems like most things these days are stored in "the cloud," and the case isn't much different when it comes to insurance. This kind of data storage has its obvious merits, but it also presents yet another vulnerability that can open up insurance companies to cyberattacks.
In order to prevent hackers from getting between them and their stored data, insurers should be diligent in the cloud service they select. As with third-party threats, insurance companies should ask questions about security measures cloud providers have in place to protect their sensitive data. If cloud access is imperative to a company's operations, they should be sure to have a plan B in place, should an attack happen and they be barred from the cloud.
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