5 Information Security Best Practices for the Insurance Industry

Feb 1, 2022

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This submit is a part of a collection sponsored by AgentSync.

In comparison with 20 years in the past, trendy enterprise professionals reside the great life. Developments in cloud computing and digital storage capabilities have allowed organizations to automate duties and combine knowledge, saving each time and cash. For insurance coverage professionals, whether or not they’re brokers, carriers, MGAs, or MGUs, the latest multi-billion greenback funding in insurtech has created efficiencies we might as soon as solely dream of. Nonetheless, with nice know-how comes nice accountability.

With massive quantities of knowledge now saved on-line, hackers now not have to interrupt and enter a bodily location to steal knowledge. In 2020 alone, the US reported practically 4,000 knowledge breaches. These knowledge breaches and different cyber assaults not solely compromise the non-public data of hundreds of thousands of people, however additionally they find yourself costing some huge cash! An estimated $10.5 trillion worldwide by 2025, to be precise! Assume you’re secure since you’re only a small company? Even small companies endure a median of $25,000 in losses yearly by the hands of cyber criminals.

The insurance coverage business runs a fair higher danger on the subject of IT safety because of the excessive quantity of delicate and beneficial knowledge essential to carry out day by day operations. Within the flawed arms, the massive quantity of non-public knowledge that an insurance coverage firm, company, or brokerage homes may very well be used for something from bank card fraud to id theft. With insurance coverage business companies more and more counting on web-based platforms to retailer and talk buyer knowledge, correct IT safety is extra vital than ever.

Some latest, high-profile insurance coverage business data safety incidents embody:

These examples are scary. And the reality is, they’re simply a few of the largest and most public cases of cyber assaults on the insurance coverage business. Fortunately, your group doesn’t should be a sitting duck. There are steps you possibly can take to mitigate IT safety dangers and provides your self and your shoppers higher peace of thoughts.

Right here’s an inventory of 5 finest practices each insurance coverage provider, company, and MGA/MGU can implement now to reduce the dangers of an assault taking place.

Multi-factor authentication

Unsure the place to start with making certain your knowledge is safe? A easy begin is by enabling multi-factor authentication (MFA) on all of your accounts and units. MFA is only a great distance of claiming that you just want multiple solution to show your id earlier than getting access to a system.

As soon as MFA is ready up, all customers might be required to enter one-time code, or token, together with their common password. MFA typically makes use of textual content messaging or e-mail, and also can perform with an app like Google Authenticator. Consider MFA as a further password that solely . Or, not less than somebody must have bodily possession of your cellphone or entry to your e-mail account along with your password, which reduces the probabilities of improper entry. This gives an additional layer of safety to your shoppers’ knowledge, And for the reason that code is totally different each time, even hackers who might have guessed your password received’t be capable to get into your accounts with no second type of authentication.

IT safety coaching necessities

Added to payroll? Test!

Desk assigned? Test!

Welcome lunch? Test!

IT safety coaching? Wait what?

For those who don’t have already got IT safety coaching as part of your worker onboarding course of, now’s the time so as to add it. In line with an business report, 47 % of enterprise leaders cited worker error because the main explanation for a knowledge breach at their group.

With out coaching, staff may not suppose twice to depart their pc or vital paperwork unattended. Whereas some quantity of worker negligence is unavoidable (no one’s excellent!), implementing correct safety coaching throughout worker onboarding and all year long can result in a major lower in human error.

Restrict or break up knowledge entry throughout staff

Like every valuables, you shouldn’t hold vital buyer knowledge multi functional place. For instance, chances are you’ll wish to retailer clients’ names and addresses in a single database, their Social Safety numbers in one other, and their private well being data in one more separate database. In doing so, you’ll make it extra doubtless that within the occasion of a safety breach, nobody individual or database has sufficient data to pose a menace.

In fact, splitting up knowledge itself isn’t the whole reply. This may solely work if every supply of knowledge has totally different passwords and login necessities. It additionally helps if totally different staff have restricted entry to solely the information they completely have to know with the intention to carry out their jobs. Having these “partitions” in place, so to talk, helps include the harm of a safety breach if one does occur.

Hold software program and knowledge up-to-date

Usually hackers goal the software program corporations whose purposes your online business makes use of to retailer buyer knowledge. These safety breaches can really feel out of your management, however there’s a easy solution to mitigate the chance. With IT safety threats on the rise annually, software program corporations are constantly updating their very own safety measures, that means it might be time to put in that software program replace you’ve been pushing aside for weeks. When you’ve up to date your software program, it might even be time to replace your knowledge. Is your organization nonetheless housing delicate knowledge information which are now not wanted? Cleansing up your methods and units can reduce the harm brought on by a safety breach – each by stopping it to start with, and by defending the information of individuals and corporations that now not must be in your system in any respect.

Know your danger

The optimism bias is a logical fallacy that leads people to imagine they’re at a decrease danger of one thing dangerous taking place than the common individual. Relating to knowledge breaches, the identical factor applies. It’s simple to suppose you’re free from the specter of a cyber assault, particularly if your organization has by no means been affected by one (that’s really the gambler’s fallacy). In actuality, those that suppose “it received’t occur to me” usually tend to let their guard down, which might enable safety threats to slide in by the cracks.

Keep alert and pay attention to any suspicious emails, calls, or hyperlinks you obtain. If you end up uncertain whether or not a hyperlink or e-mail is fraudulent, it’s at all times higher to be secure than sorry. Double-check with others at your group (significantly your IT or data safety division) earlier than clicking or appearing on something suspicious, and warn others should you do uncover a potential rip-off.

Make a plan

Together with the following pointers, it’s a good suggestion to create a plan of motion in your group to comply with within the occasion of a cyber assault to reverse the damages and forestall additional hurt from being accomplished. For those who’re half of a bigger insurance coverage firm, this accountability doubtless doesn’t fall to you. For those who’re an company proprietor or principal, it’d. Both manner, figuring out the usual working procedures within the occasion of a suspected or confirmed cyber assault is vital to appearing rapidly within the occasion one takes place.

With IT safety threats changing into more and more frequent, taking the required precautions might find yourself saving your organization’s status, funds, and most significantly, your clients’ private data.

Whereas no prevention is one hundred pc assured, it’s wonderful what number of corporations merely don’t take any precautions, thus making a hacker’s job that a lot simpler. Whenever you comply with these finest practices, amongst many others, you possibly can cut back the likelihood of a profitable cybersecurity assault in your firm.

Safety and compliance are sophisticated. Be taught extra about how AgentSync will help you streamline your compliance administration.

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