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It's hard to think of an insurance company not using some sort of a insurance software solution. Be it claims management software, customer relationship management (insurance CRM software), data analytics, or risk assessment algorithms – computers and algorithms are becoming increasingly important for the insurance industry.
Actually, the insurance software development market is projected to reach USD 28.5 billion by 2031, driving significant revenue growth in the insurance sector.
One problem with humans, with all due respect, is that they are hard to scale, and cloning is not there yet.
And since insurance software is a must, there are some key security features in insurance software that every insurance business has to take care of.
Key takeaways:
- Security is key to keeping customer trust and protecting sensitive info in the insurance industry.
- Use Multi-Factor Authentication (MFA) – MFA reduces the risk of unauthorized access and overall business processes security.
- Monitor systems and do audits regularly to identify and mitigate potential security threats.
- GDPR compliance is a must to avoid big fines and reputation damage.
- Integrate advanced security features like firewalls and intrusion detection systems to protect against attacks.
Insurance Company and Customer Data Security
Data security is non-negotiable in the insurance industry. With digital transactions and customer information everywhere, insurance organizations must have robust security to protect data and customer trust. A breach can result in big financial losses and irreparable reputation damage.
The average data breach cost ranges between $1.25 million and $8.19 million per incident.
Anthem, one of the largest insurance companies in the U.S., suffered a data breach in 2015, compromising the personal information of 78.8 million individuals. This incident highlights the critical importance of data security in the insurance sector.
Insurance companies must know the stakes and implement insurance solutions that fit their operational framework. Continuous investment in technology that prioritizes data protection ensures business continuity and compliance with evolving regulations.
Encryption
Encryption is the first line of defense against unauthorized access. 90% of insurance professionals agree that encryption is vital for overall insurance company security. However, only 50% of insurance companies have a comprehensive encryption plan for the entire company, with many having partial or no encryption policies.
Encrypting sensitive information, whether in transit or at rest, is crucial for securing policy management, claims information, and customer experience data.
Regulatory pressure is mounting, and insurance companies must adopt encryption as a standard practice to meet compliance requirements and protect carrier information.
Authentication and Authorization
Multi-Factor Authentication (MFA) is essential for securing access to insurance software systems. By requiring users to verify their identity in multiple ways, MFA reduces the risk of unauthorized access.
A report from Security.org states that two-factor authentication can reduce the risk of fraud by 99.9%. This highlights the effectiveness of 2FA in preventing unauthorized access and protecting sensitive data from breaches. Additionally, it is noted that two-factor authentication can prevent 85% of targeted attacks on user accounts.
Insurance carriers must prioritize secure login mechanisms in their applications. This includes using Single Sign-On (SSO) solutions that simplify the user experience while maintaining security standards.
Every exposed API needs tough security protocols to prevent unauthorized access and secure sensitive policy administration data. As cyber attackers get more sophisticated, advanced authentication is a must to protect customer data.
Continuous Monitoring and Auditing
Continuous monitoring and auditing are vital components of an effective security framework for insurance software. The recent surge in cyber insurance claims demonstrates the need for proactive security solutions.
Using advanced monitoring tools gives you visibility across system components, ensuring early threat detection. This is key to protecting critical customer and carrier information in the insurance business.
Regulatory Compliance
Compliance to data protection regulations is a must for insurance software solutions. Regulations like GDPR has strict rules on how organizations must handle personal data and emphasizes transparency and accountability. A survey showed that only 19% of organizations have cyber insurance coverage for events above $600,000, that’s a huge gap in preparedness among many insurance companies.
Insurance organizations must comply with data protection regulations, such as GDPR, to avoid fines and revenue loss. A proactive approach to regulatory compliance, including employee training and regular audits, is necessary to mitigate risks of non-compliance.
Cyberattack Protection
Cyberattacks are a big threat to the insurance industry, ransomware accounts for 81% of claims involving recovery expenses. The average cost of a cyber insurance claim for small to medium enterprises (SMEs) is $345,000 and ransomware is $485,000 per claim. These numbers show the financial impact that cyber threats can bring to organizations that are not prepared for these attacks.
Cyberattacks remain a significant threat to the insurance sector. To counteract these risks, insurance companies need advanced security features like firewalls and intrusion detection systems. Human error, however, is often the weakest link, so fostering a culture of cybersecurity awareness among employees is essential for overall operational efficiency.
Case Study: Agent Portal - Insurance Software For Your Company
Agent Portal is an example of security in action within insurance solutions. The platform undergoes regular security audits, ensuring stability, performance, and resilience. By integrating document management, task management, and claims payments capabilities, the insurance system improves operational efficiency while protecting customer data and enabling scalable solutions for insurance organizations.
The insurance software is in High Availability (HA) mode, which means that if one server fails, it won’t affect the overall application. This is crucial in providing uninterrupted service to users, especially in an industry where time is of the essence. Insurance system activities are monitored across multiple levels including hardware parameters, database actions and user interface interactions. This thorough monitoring allows to detect issues before they become major threats.
Also, Agent Portal has secure API access, each interface is protected from unauthorized access. Communication with the application is encrypted according to latest data security standards. Regular performance testing also validates the effectiveness of these security features to ensure that the solution meets and exceeds industry standards in protecting sensitive data.
The tool provides you with precise document management, robust data analytics, and workflow automation that is helping to streamline operations. It increases revenue, insurance agents efficiency and productiveness, and overall operational efficiency, while lowering the cost
Final Thoughts on Insurance Software Security in Insurance Industry
Remember that insurance software is merely a tool, and someone will be using it. All it takes for a company to have a crisis is one employee that falls asleep face on the keyboard, sending
The weakest link and the strongest tool of a cybercriminal is a human being. So, taking care of data breaches in terms of software is one thing, but teaching your staff how to spot a potential scam is another kettle of fish.
You take care of your people, we'll take care of your insurance software. Contact us to request a use case and talk business.
