Data Loss Prevention in Insurance Institutions
Data serves as the lifeblood of the insurance sector. Insurance companies, due to the nature of their operations, amass a significant amount of sensitive data, surpassing most other industries in this regard. However, with great data comes great responsibility, and it appears that certain insurance companies may require some guidance in safeguarding their invaluable data.
Undoubtedly, data protection is a crucial issue for insurance companies, yet there is ample room for improvement. It is almost comically simple how cybercriminals manage to access sensitive data at times.
Nevertheless, this is not entirely negative news. Preventing simple attacks is far easier than countering more complex ones. Therefore, let us examine what measures insurance companies should adopt to prevent data loss. Additionally, we will explore the role played by insider threats and human error, wrapping up with a brief overview of data regulations and compliance within the insurance industry.
Why is data so important in the insurance industry?
The sensitive information that insurance companies hold includes:
- demographic information
- personally identifiable information
- property details
- historical claims data
- credit scores
- financial records
- health records
- employment records
Insurance companies heavily depend on data for various aspects of their operations. One such aspect is the evaluation of risks associated with individuals, businesses, or assets that require insurance coverage. By utilizing data analytics and predictive modeling techniques, insurance companies can effectively identify potential instances of fraud. Additionally, personal data is crucial in understanding the needs and behaviors of customers, enabling insurance companies to offer appropriate products and maintain a competitive edge.
The presence of sensitive data is widespread in the insurance industry.
Data Breaches in the Financial and Insurance Sector
$5.85M average cost of a financial services data breach.
680 confirmed data exposure incidents in 2023.
74% of compromised data are personal identifiable information (PII)