Cybersecurity in the Insurance Industry

When cybersecurity and the insurance industry come to mind, one may think of cyber insurance.  However, it is also crucial to remember insurance companies are under the same threats as other industries when it comes to cyberattacks and data breaches.  Furthermore, even though insurance companies may help mitigate the risks of cyberattacks for businesses, it does not mean the insurance industry itself is protected from those same threats. Cybercriminals have a variety of motives for committing the crimes they do: hacktivists aiming to make a political point, thieves attempting to steel data for profit and terrorists seeking to do irreparable damage. Nonetheless, insurance companies are particularly vulnerable due to the enormous amounts of data they store. Already, 100 million Americans have been affected by data breaches in the insurance industry alone. This being said, more stress should be placed on keeping this valuable data safe.  At the Insurance Information Institute’s annual P/C Joint Industry Forum, former FBI Director Robert Mueller described cybersecurity as “a top priority for national security and corporate America” with the insurance industry playing a pivotal role in its future. As Adam Hamm, commissioner of North Dakota Insurance Department explained at the forum, “If we don’t get cyber security right, it could critically wound the insurance industry as a whole.”