Over the last decade, insurance companies have upped their game by integrating advanced solutions such as the Internet of Things (IoT), Artificial Intelligence and Machine learning to tighten their security for digital insurance. These services act as a means of cyber resilience to any intentional (security breach, hacking, etc.) or un-intentional (software malfunction, human error in system configuration, etc.) leak of information, thus protecting the interest of sensitive client financial information, while simultaneously ensuring a smooth business processing for several insurance firms.
Major areas in which cybersecurity is being used by these insurance firms include security exchange platforms and the blockchain financial business models. However, it won’t be safe to say yet that by integrating such smart technologies, insurance companies are a 100% invulnerable to any untoward cyber-attacks. In fact, there are a lot of challenges to overcome when it comes to cyber resilience. Some of these challenges include:
- Failure to Upgrade Legacy Technology:
Most of the insurance companies have digitized their business. Therefore, it is highly important that these companies upgrade their security technology from time to time. The continual use of legacy technology could put the insurance company at potential risk of a breach in their cyber security and lead to the leak of sensitive client data
· Effective Management of a High Volume of Data
Another major challenge to cyber resilience is the large influx of data and a need for its effective management. This data is essential for insurance firms to make intelligent business decisions based on client profiles and implement their pricing strategies accordingly. However, any incompetency in the management of such a large client data could put the client information at risk.
· Countering the Rise of IoT in Cyber Hacking
Banks and insurance firms are not the only ones who are upping their games. A lot of hackers and other cyber-criminals are making the use of advanced technologies such as the Internet of Things to breach into high-security accounts and steal sensitive data in order to create insurance frauds. Combating such technologically equipped criminals by coming up with even more tighter security solutions is a major challenge for safeguarding cyber insurance.
Solutions to Overcome These Challenges:
Although no definite solutions can be vouched by cyber-crime crusaders to completely overcome these challenges, continual innovations in cyber security technologies seems like the only pragmatic option. Therefore, increasing efforts are being made in areas like:
- Risk and compliance management: To ensure regulatory compliance and secured auditing for insurance companies
- Data Loss Prevention: Data Loss Prevention solutions are the most focused area for innovation in online-data security. Financial institutes such as banks and insurance firms are increasing Data Loss Prevention along with their encryption models to overcome any threat of cyber intrusions.
- Faster Disaster Recovery: Disaster recovery solutions are utmost important in case of any unfortunate circumstances leading to data loss. These solutions are a means to ensure faster retrieval of data through advance replacement resources.
