With each new year, US insurers must prepare to face a slew of new challenges. In 2019, many of these challenges center on IT security. With new legislation emerging at the global and state levels as well as increased digitalization of processes, IT leaders should be looking ahead to how they can ensure they are looking out for the best interests of agents and insureds alike.
High-profile security breaches, including those in other industries, have made the importance of cybersecurity apparent to senior executives and board members in the insurance industry. Security comprises an average 10% of insurance IT budgets, but it takes even more resources to manage appropriately. Some smaller carriers are missing even basic security capabilities such as ethical hacking programs and mandatory security training. Newer regulations have boosted the importance of having a CISO to oversee cybersecurity initiatives and manage risk. This role is no longer simply a requirement: It is a key strategy point for insurers hoping to stay ahead of the curve when it comes to security.
Regulations are not the only reason to prioritize IT security. As more processes are digitized, the risk of a security lapse grows. Confidential data and customer information must be protected not only to meet compliance, but to maintain strong relationships with policyholders and agents alike. Insurers are meeting these needs by building up their security capabilities. Novarica research has found that almost half of all insurers are working on their device and app security, encryption capabilities, and their ability to detect intrusion into their systems.
While not every carrier is prioritizing security, these security challenges will continue to grow. Keeping an eye on what peer insurers are doing to mitigate risk and plan for future regulations can help carriers of all sizes stay prepared. To learn more about how US insurers are planning to address IT security issues, read Novarica’s recent Council Study IT Security Update 2019.
Add new comment