4 Key Cybersecurity Issues for Insurance Agencies
Cybersecurity can be overwhelming; where do you even begin?
From legal issues to employee security training, down to the technology you use, there are plenty of vulnerabilities and easy access points for hackers along the way.
It’s imperative to your business success to have security on top of mind.
Data security. Employee security. External security. All of which must be considered.
Let’s take a look at four key cybersecurity issues for insurance agencies.
4 Key Cybersecurity Issues for Insurance Agencies
Legal Concerns & Regulations
As you know, the insurance industry is heavily regulated. With this comes many legal responsibilities. You are required to protect, collect, and store information in compliance with HIPAA, GDPR, The Insurance Data Security Model Law, and so forth. If your agency is not in compliance and you are victim to an attack you can face lawsuits from clients for leaving their personal data at risk.
Compliance issues to consider:
Data protection
Cybersecurity
The Payment Card Industry (PCI)
Global governance (if you operate on a global level)
Regulations and rulings that could impact the insurance industry:
The National Association of Insurance Commissioners (NAIC)
The Financial Industry Regulatory Authority (FINRA)
The Securities and Exchange Commission (SEC)
The Federal Reserve
Employee Security Training
Another important area to consider when it comes to cybersecurity is your employees. This may not seem as important, but remember they are your last line of defense when it comes to protecting your data. Meaning, your employees have a role to play in keeping your data safe from hackers.
For example, one employee could receive a phishing email and click on the link, then enter their login credentials, and now you’ve just become victim to a successful attack. It’s really that easy for hackers to gain entry into your systems. However, with the right cybersecurity training your employees would learn how to identify phishing emails, rather than risk clicking on them.
Aside from defending against phishing emails, your employees should be aware of the following:
Not sharing personal identifying information (PII) over email. Instead, use a file sharing service.
When accessing data from home use a VPN and never use public WiFi.
Use strong passwords and update them regularly. (More information on creating secure passwords here.)
Understanding what to do if they get hacked. (You can find more information on creating a disaster recovery plan here.)
Implementing a clean desk policy. This means no sticky notes or loose papers on desks containing personal information about clients. Consider another client coming into your offices and being able to see the information on these pieces of paper, or if you employ a cleaning service, or anyone that comes into your agency potentially has access to the information left out.
These are just a few of the security concerns pertaining to employees. The list could go on and on as your employees are your weakest link when it comes to overall security, that’s why security awareness training for employees is so important.
Collecting & Handling Data
Collecting and handling information goes along with employee security training, but this also applies to how your website and mobile app collects and stores data too.
Due to the amount of personal information collected from current and potential clients on your website, insurance agencies are a major target for hackers. Just think about all the information you receive on your website forms when creating quotes; it’s sure to make any hacker look your way.
To remedy this, ensure your website, mobile app, client and agent portals, etc. are all secure. A secure website should include:
SSL certificates
HTTPS protocols
Secure cloud-based hosting
Your website should also look secure. Users are not going to want to enter their personal information into a site that looks outdated and risk their data being compromised. Even if your site is secure, it needs to dress the part, otherwise, you could lose potential clients to a competitor with a more secure looking website.
Your Technology
One thing you may not consider when it comes to cybersecurity is simply the technology you are using. Although, when following HIPAA standards, it is unlawful to not use updated software. Under the Insurance Data Security Model Law, you can find more information on what is required of insurance agencies in certain states when it comes to data security.
Any hole in your security system is an entry point for a hacker or breach. Even programs like Microsoft Office, Excel, PowerPoint, and Outlook can open your network to vulnerabilities. These may seem unrelated to the overall security of your company, but if a hacker can access these files, they have opened a door to more confidential information.
Your business is especially vulnerable if you are using programs that no longer receive support or security updates. When a hacker takes over your systems, most likely they are seeking a pay-out to recover your data or uncover confidential information.
Being able to restore your data will be costly, but if you have backed up your systems recently, you’re in luck. You can restore your data without having to pay a hefty price.
Also, cloud-based applications are much more secure than on-site data. One reason is because cloud-based apps are monitored more heavily. Another reason they are more secure than on-site data is because of their better firewall protection.
Where An MSP Fits In
Luckily, by partnering with a managed service provider (MSP), like Omega Computer Services, the burden of security can be taken off your shoulders. Not only should your service provider excel in keeping your data safe from hackers but finding an MSP that is extremely knowledgeable in HIPAA and record-keeping requirements is a major benefit to your agency, as both must be considered to stay up to date with the changes in regulations.
As mentioned earlier, your technology plays a huge role in overall security concerns for your agency. However, another benefit of partnering with an MSP is for the hardware refreshes. This allows for your agency to stay current with technology trends without breaking the bank.
It’s also important to partner with an MSP that understands your unique needs including various carrier sites, printing and scanning requirements, and client retention. Not to mention, if your managed service provider already has developed relationships with the vendors you work with daily, it can ease your mind and put you back in a place to focus on more important business matters.
