The insurance industry has seen a rise in cyber attacks as companies shift to digital platforms to enhance customer engagement and expand product offerings. In 2022, the industry reported $1.22 trillion in net premiums, with property/casualty and life/annuity insurers contributing significantly. The sector employed 2.9 million people, with many working directly for insurers or related enterprises. As insurance companies store vast amounts of personal data, they are prime targets for cybercriminals. The demand for 24/7 service and competition from financial technology companies push the industry to innovate. Medical insurance in Qatar is another area where insurers need to incorporate the latest technologies to meet client expectations. To protect against growing cyber threats, integrating cybersecurity into new technologies is crucial.
Cybersecurity in the Insurance Industry
Cybersecurity is crucial in the insurance world because of all the personal data handled. A survey by Digital Guardian pointed out major concerns and strategies for keeping this data safe, highlighting the need for better technology, policy upgrades, user training, and the integration of these steps. As a Big Data field, the insurance industry faces its own set of challenges due to its heavy data collection and storage, making it a big target for cybercriminals.
Case Study
Insurance companies, like cybersecurity leader Chubb, are getting more attention from cybercriminals. In March 2020, Chubb was hit by a ransomware attack by Maze, which focused on data theft without disrupting operations. Chubb confirmed no impact on its network, but attackers claimed they had executive data. The FBI warned about Maze’s increasing attacks, underscoring the ongoing cyber threats to the industry. Despite being aware, companies remain vulnerable, as seen in past breaches and Chubb’s experiences.
The Insurance Industry and Risk
When talking to security professionals about risk management, you’ll likely hear similar suggestions. Across different fields, security specialists and risk managers generally agree on four ways to handle risk. While the terms might vary, the four universally accepted methods for dealing with risk are:
- Avoidance (staying away from risky actions)
- Mitigation (using processes and systems to reduce risk)
- Transfer (shifting the risk to another entity, often through insurance)
- Acceptance (being okay with the possible outcomes of the risk)
The insurance industry probably gets risk better than any other sector since it specializes in taking on risks that others prefer to outsource via insurance. Risk-averse businesses across different markets shift some of their cybersecurity risks to insurance companies to lessen their exposure to major cyberattacks.
Actuarial Science and Cybersecurity
Actuarial science applies math and statistics to assess financial risk, especially in insurance. Actuaries evaluate and manage risks tied to financial ventures and insurance policies, including cyber risks. Even though the industry hasn’t nailed preventing cyberattacks, its grasp of risk helps make smart decisions about managing cyber risks. Different sectors, like healthcare and finance, face various cyberattack risks. Insurance companies, with their vast data, provide valuable insights into measuring and managing these risks.
Challenges of Cybersecurity in the Insurance Industry
The insurance industry deals with unique cybersecurity challenges because it handles a lot of sensitive data, both structured and unstructured. Structured data is organized and easy to search, while unstructured data, like emails and social media content, lacks a set format, making it tougher to manage and secure. Traditional security tools often fall short, and staff might not have the expertise to tackle threats. Trust is key, as customers need to believe their data and claims are safe with their insurer. A data breach can seriously damage an insurer’s reputation and market position.
Cybersecurity Solutions for the Insurance Industry
Cybersecurity research for Big Data in insurance is moving fast to protect sensitive info from cyber threats. AI and ML are crucial for spotting changes in data behavior and responding to threats in real-time. Key solutions should focus on access controls, data monitoring, encryption, and preventing data leaks, ensuring real-time analysis without slowing down performance.