Why Cybersecurity is Important for Insurance sector?

Through this article, we will gain in-depth knowledge as to why there is an increasing demand of cybersecurity in the insurance sector. The insurance industry is a top target for cybercrime due to its immense magnitude and reach, as well as the large amount of sensitive data it maintains and holds.

Additionally, many insurance-based businesses have shifted more of their vital operations to digital channels in recent years, the number of cyberattacks against the sector has also sharply increased. Both consumers and insurance companies can use this article as a useful resource for information on the numerous threats the sector is experiencing and the precautionary cybersecurity measures they can take to reduce the effects of such attacks.

The Different Cyber Attacks Faced by Insurance Sector

Following are some of the major cyberattack which have been faced by the insurance industry recently: –

1) Ransomware Attacks – As cyber criminals feel that insurance businesses are more likely to pay the ransom if their policies cover it. Hence, insurance companies are providing cyber coverage, particularly for ransomware attacks as they might be aware that their customers are being increasingly targeted. Cyberattacks caused by ransomware have developed in terms of threat disclosure, moving beyond simply encrypting files to threatening to post hacked material on the dark web for other hackers to access.

2) State-Sponsored Attacks – The Personal Identifiable Information (PII) which have been stolen can be used by state-sponsored threat actors to aid in investigations and intelligence gathering for the nation they represent. According to the cybercrime study, some foreign intelligence services gather this kind of information and insert it into searchable databases so they can run specialized queries. Insurance companies hold a lot of personal information that cybercriminals might use for fraud and other nefarious purposes. Insurance businesses are therefore a desirable target for cyberattacks.

3) Hacktivists Attacks – Cybercriminals with ideological motivations may target insurance companies in order to further their commercial or political objectives. Government and other financial entities, who may be policyholders, are likewise vulnerable to hacktivist attacks. One of the most exposed industries, the healthcare industry, has become a prime target for hackers thanks to the recent COVID-19 outbreak. COVID-19 records may be used by cybercriminals to commit identity theft and insurance fraud.

4) Third Party Attacks – In insurance businesses, using third-party attacks are becoming more common. Having inadequate security measures in place makes many of these third-party companies exposed, which is the problem with this situation. Therefore, even if insurance businesses may have a superb security infrastructure. Although the third party might not have numerous security measures in place, their sensitive data is still at risk.

5) DDoS Attacks – Increased cloud utilization in the insurance industry has raised the possibility of vulnerabilities, particularly those exposed to DDoS attacks. Cybercriminals frequently have access to and can alter sensitive data belonging to insurance companies while preventing access by their own staff. However, this problem clearly demonstrates how organizations have a naive faith in cloud service providers.

The Cybersecurity Measures for Insurance Sector

Following are some of the precautionary cybersecurity measures which can be adopted by insurance businesses: –

1) The search for cybersecurity solutions in order to safeguard Big Data in general and the insurance sector in particular is progressing quickly. Large data sets, particularly private and financial data, are a prime target for cyberattacks, hence many new cybersecurity solutions are geared towards protecting these valuables.

2) Insurance firms may greatly improve their security measures against malware, ransomware, and advanced persistent threats (APT) by implementing modern technologies like Artificial intelligence (AI) and machine learning (ML). These new technologies are particularly suited to solutions that can identify any departure from an anticipated or predefined pattern in data behavior since they can swiftly analyze vast amounts of data. They can be used to keep an eye on data operations and quickly respond to intrusions.

3) Basic cybersecurity solutions for the insurance sector ought to focus on access restrictions, data behavior, the encoding of massive data quantities, and the prevention of data breaches. Big data security solutions need to provide real-time analysis and monitoring and be made to prevent performance deterioration, which causes delays in data processing.

Conclusion

Hence, from the above discussion, we can conclude this article by saying that the high levels of risk that the insurance sector must deal with, along with the plentiful resources provided by a successful business model, create an environment that draws the top minds in security solution development.

Security professionals at all levels have a lot of options in this industry. Since, trust is fundamental to the insurance businesses which is essential for its success. Therefore, the insurance sector is the perfect area for security experts who want to make a significant impact on the lives of many people.

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