One of the most critical topics for insurance companies in 2022 is cybersecurity.
One of the most critical topics for insurance companies in 2022 is cybersecurity. With the number of threats and attacks daily rising and growing in complexity, it is imperative that your organization has a strategy for achieving a strong security posture. One of the biggest reasons that insurance companies often fall into the crosshairs of cyber criminals is that they collect and store large amounts of personally identifiable information (PII). If this data is stolen, bad actors can then use it for a variety of criminal purposes, including fraud, identity theft, and phishing attacks. However, network intrusion and data theft are not the only risks for insurance companies. Hacktivists are ideologically motivated cyber criminals who frequently target insurance companies for socio-political or economic reasons. These people do not care about stealing data but would simply like to disrupt your processes and cause as much trouble as possible.
Out of all the possible threats, ransomware attacks may be the most common and most dangerous for an insurance company. In a ransomware attack, hackers breach your network and block access to it until their demands are met. In effect, your systems are held hostage until a ransom is paid. This can be a way for hackers to get information on your policyholders and can reveal other useful information. For example, if your insurance company offers cyber insurance, hackers can find out who those policyholders are and what the maximum payouts are for those policies. They can then use this information for further attacks.
The question is no longer if but when. Headlines have already shown insurance companies paying millions of dollars in ransom to cybercriminals. The amount of damage a hack can do to organizations in this industry is catastrophic. People come to an insurance company on the basis of trust. When that trust is broken, it can be tough to get it back. That’s why cybersecurity for insurance companies is vital. One of the ways to provide additional security for your assets is through an insurance policy specifically designed for cybersecurity. The cyber insurance market has grown incredibly fast, and there are many companies that provide these policies. For example, AIG cyber insurance policies are available, and Trava Security provides cyber insurance. Below, we explore your organization’s options in the cyber insurance market in 2022.
Cyber insurance is a relatively new sector that has experienced rapid growth. Its current worth is sitting at several billion dollars. If you were to go out and read any cyber insurance market report, you’d see that projections for the market are impressively positive. The global cyber insurance market is on the rise, and there are several clear reasons for this. Even when you have taken every precaution you can possibly take, the unexpected can still strike. When this occurs, your organization can suffer. Many countries have imposed fines for network breaches even if no errors in compliance have occurred. This can result in major financial losses for your organization.
For example, your system could be compromised by a zero-day attack. In a zero-day attack, a cybercriminal discovers a vulnerability in a program before the developer is aware of it. This allows them to launch several attacks, which they can run for as long as it takes for the developer to create and distribute a software patch. There are very few methods to mitigate the threat of a zero-day attack. That’s why it helps to have a plan for when the worst does happen. These cyber insurance market trends are being driven by this need for a backup strategy. The best cyber insurance covers a variety of vulnerabilities that could strike your business, including:
Companies in the insurance industry are just as vulnerable to these losses as organizations in any other industry. Some hackers will breach your organization for the purpose of stealing money or demanding a ransom. In the event that either of these attempts is successful, your cyber insurance plan can protect you against these losses. Sometimes, an attacker will damage or destroy systems during their attack. Computer replacement is a feature of some cyber insurance plans that cover this vulnerability as well.
We have already covered many of the risks in the insurance industry related to cybersecurity. Another vector that needs to be addressed is third-party risk management. As insurance companies increasingly turn to outsourcing to achieve greater efficiency for a variety of processes, new risks also need to be mitigated. You are responsible for your policyholders’ PII data. This is true even if that data is being stored or processed in any way by a third-party vendor. It is vital that you ensure that any third-party vendors you work with have a strong security posture to keep your data safe. One of the ways to learn more about cybersecurity in this industry is to review an official industry report. These are provided by a variety of research companies and can often be rich with data that can help you make data-driven decisions. A report like this can often be downloaded as a cyber insurance PDF.
Recent events have created new risks for several different industries, including insurance. For example, COVID-19 has driven the turn to remote work for many different organizations. Remote work, though popular among workers, has several security issues that need to be considered. Many of the personal devices used by remote workers do not have the security features needed to keep the company network secure. Thus, there has been a push to close these vulnerabilities. With the right tools and strategies, many of these risks can be mitigated.
Another reason why cybersecurity is vital in the insurance industry is regulatory compliance. Several jurisdictions have placed regulatory requirements on insurance companies to ensure that they maintain security within their organization. One example of a regulation like this is the NYDFS cybersecurity regulation. This regulation has been handed down by the New York Department of Financial Services and requires various elements that make up a good security program. This includes requirements to have a defined CISSO and an incident response plan. Organizations must also implement multi-factor authentication and need to run annual penetration tests and vulnerability assessments. The NYDFS cybersecurity regulation impacts insurance companies and any other financial institutions operating in New York. Failure to comply can result in fines of several thousand dollars per day of violation. This is just a single sample of the many cybersecurity regulations for insurance companies that you need to comply with.
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Cyber insurance brokers help their clients find the ideal cybersecurity policies. The best cyber insurance companies take the time to understand the unique needs of their clients so that they can ensure that they get the best coverage. Not all cyber insurance policies are created equal. Some may not cover the threats that are unique to your company or industry. This is due, in large part, to the fact that the language of cyber insurance policies has not yet been standardized. This is why it is crucial to carefully shop among many options and verify all claims made by providers. With all of the strong cyber insurance market growth, many organizations have come in offering subpar plans and making promises that they cannot keep. One of the biggest cyber insurance issues to keep in mind is that general liability policies often do not cover cyber incidents. This is why you need a policy that is designed for cybersecurity.
Trava helps cyber insurance brokers by taking a different approach from the majority of providers. We enable you to secure your clients, then insure them. Using our platform, you can quickly assess risk, provide remediation guidance, select your desired coverage, and then continuously monitor your security posture. Our solution is designed so that you can provide cyber insurance quotes to your clients in 5 minutes or less. With Trava, you can set yourself apart as more than just a shopping center. Instead, you can provide a cybersecurity tool and service that your clients will appreciate.
Cyber insurance premiums can be fairly expensive. If you’re wondering, “why is cyber insurance so expensive?” you’re not alone. The primary reason for this high cost is that remediating cyber incidents can be a time-consuming and expensive process. Higher risks and greater demand are both fueling the price hikes that have been seen in recent years. The average cost of cyber insurance in 2022 is steadily increasing. This is why it makes sense to go with more than just an insurance plan. With Trava Security, you can mitigate threats and constantly monitor your organization’s security posture, thereby reducing the likelihood of a serious breach. We combine our technology and cybersecurity services with insurance to protect you no matter what happens. Your insurance policy choices need to be influenced by data regarding your current risk profile. Trava makes this easy with our FREE Cyber Risk Assessment.