With the number and severity of hacking events increasing, the cybersecurity community has come together to develop common strategies that can be used by all organizations to reduce their risks. Universal best practices are a great way for organizations to safeguard their companies. However, the unique security challenges facing each industry and the tailor-made solutions needed for addressing these issues are often ignored during these discussions. The path that the insurance industry is developing in cybersecurity is fascinating. The insurance industry is considered merely as a subsector of the financial services industry—nothing can be more than the truth. It is essential to note that insurance markets have their own business needs, technology requirements, and adoption cycles, as well as buyer individuals in relation to banks and capital markets, for those less familiar with these important nuances.
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Insurance, like banking, has a combination of fraud and security issues. But the concerns of fraud differ dramatically from those contended by the banks. Insurers typically concern themselves with such issues as policies that are opened without someone else's knowledge, fraudulent policies, and elderly customer manipulation. Although security issues are sometimes overlapping, most of these fraud trends are not directly associated with data violations. Consequently, security issues often compete for attention and resources with fraud.
Not surprisingly, insurance corporations’ CISOs continue to pursue an approach that places great emphasis on a broader view of risk management and usually communicate openly with their CEOs and bodies regarding cyber-risk. Their specific challenge is to ensure that the senior management understands the notion of risk uniquely and may sometimes take cyber-security related issues for granted.
With the rise in cost and frequency of cyber threats, companies openly accept improved cybersecurity. But how suitable is a risk reduction within a corporate safety program? Many companies are re-evaluating their safety practices and strategies for enhanced risk management in view of the increasing security threats. Breaching the network not only invites technological problems but has financial impacts, potential customer loss, and a negative brand reputation in the marketplace. In the future, businesses will strive to adopt more holistic safety approaches, including improved preventive measures and responsive plans.