Cybersecurity for Insurance Companies: Is Risk Minimized in the Cloud?
The traditional cat and mouse game between insurance carriers and hackers have now advanced to a new level. A report published by Ernest & Young puts 2020 into the spotlight as the year which saw an unprecedented rise in the number of cybersecurity attacks on businesses. Industries that suffered ransomware attacks in 2020 paid out $370 million in cryptocurrency — a whopping 336% more than in 2019. One of the main reasons probably is because Covid-19 forced organizations into ad-hoc measures that bypassed cybersecurity protocols.
The proliferation of advanced internet tools has also meant that virtually anyone can become a cyber hacker. In fact, ransomware-as-a-service is available on the dark web for those looking for it. Putting up as many barriers as possible between sensitive data and cyber thieves might seem like a Bond movie probably but yes there are ways to make it as difficult as possible to get through the protective shield.
The emergence of cloud hosting in insurance
For a long time, many insurers preferred their on-premise insurance systems to cloud hosting as they believed they had tighter control over the former, allowing them to regulate security measures better. However, this has changed. The most obvious push for shifting to the cloud was the urgent need to create a mobile remote workforce but also because digital transformation needs the cloud.
The long-term advantage of the cloud though is the greater protection it offers carriers from cyber threats. There are five crucial ways in which the cloud can improve cybersecurity for insurance companies.
1. Security is in-built into the solution
Cloud security is an integral part of the software, rather than just being an add-on feature. The leading cloud hosting providers often differentiate themselves by the sophistication of their cybersecurity systems. Using a cloud provider also means that companies can be assured that their security is constantly being monitored and upgraded. The advanced level of cyber threats companies now face means that simply conducting routine audits might not offer adequate progression.
Microsoft Azure invests over $1 billion annually in cybersecurity research and development for Azure cloud service, alone.
Cloud providers often have a dedicated cloud security team that is constantly identifying threats and closing loopholes. This proactive approach and sophisticated cloud security measures minimize the risk of cyber hackers compromising data. Vulnerabilities are resolved before hackers can take advantage of them, which improves cybersecurity for insurance companies. In the Solarigate attack recently, an intern used a naive “solarwinds123” password that hackers used to inject their code into on-premise software that was then distributed during an update into the systems of Homeland security and other departments. It also reached 8,000 customers worldwide, through Microsoft’s services. The hack was exposed only when it hit the cloud services. The hack was successful only because on-premise identity systems are easier to compromise.
2. Data is protected at all stages
Insurance carriers are seeing a greater demand from customers for self-service and insurance mobile apps. While these features can undoubtedly improve customer experience, allowing more users into the system comes with a certain level of risk. With insurance mobile apps, for example, data needs to be transferred from the main storage center (where it’s at rest) to the user’s app (where it’s in transit). Protecting data at both stages is crucial. Data in transit is particularly vulnerable to leaks as hackers can tap into the wireless channels it uses during transmission.
Cloud security measures can protect data at rest and in transit through cloud data security features like encryption and multi-factor authentication. Encryption ensures that cyber hackers cannot decode data even if they do get access to it, while multi-factor authentication ensures that only users authorized to access the data can view it.
Read the full blog by my colleague, Krishnakumar Gajain, who has spent 16 years in the insurance sector on the product development side. Click the link below…
Originally published at https://www.simplesolve.com on October 11, 2021.
