Different Types of Cybersecurity Threats for Insurance Companies

By CIOReview | Tuesday, July 20, 2021

It is essential for the insurance companies to know about the various cybersecurity vulnerabilities as it will help them adopt better risk detection and prevention measures.

FREMONT, CA: Cyberattacks have become more severe and frequent as everything has become more connected, including assets, people, business, and trade. As insurers deal with particularly sensitive data, the insurance industry is more vulnerable than most.

Many insurance organizations have suffered significant data breaches in recent years. These aren't the only insurers who have been affected. According to research, the average insurance business receives over 100 cybersecurity attacks per year, and 30 percent of those attempts succeed.

Insurance firms will undoubtedly continue to confront a variety of cybersecurity dangers as technology evolves. Knowing about potential cybersecurity dangers puts the companies in a better situation to take the necessary precautions as an insurance director. Here's an overview of some of the most significant cybersecurity threats in the insurance industry.

While there is no one-size-fits-all method to manage or prevent cyberthreats, understanding the numerous cybersecurity vulnerabilities can help organizations implement better risk detection and prevention strategies. As a result, to avoid most of these risks, make sure to use a comprehensive management strategy.

Cloud Vulnerabilities

For many people, accessing and storing data in the cloud has become second nature. This method can elevate the risk of a data breach. Denial of service (DoS) and account hijacking attacks are also possible. Hackers can gain access to and manipulate the company's data while prohibiting the employees from using it. This vulnerability can be mitigated by incorporating a comprehensive cyber risk management strategy.

Patch Management

Companies become more vulnerable to a cyberattack if the insurance provider uses obsolete software. Most of the hackers use software defects to gain access to and steal information from businesses. If companies don't keep their software patches up-to-date, they will be subjected to various data breaches.

Cybercrime vulnerabilities can originate from anything as simple as the operating system on the computer. To avoid expensive attacks, it is recommended that companies update the software they use.

Ransomware Threats

The companies might think that only people may be taken hostage, but cybercriminals can even capture the computer systems and data. Ransomware attacks are among the most severe cyber hazards that people should be concerned about in today's world.

Hackers break into the network and prohibit people from viewing any data until they pay a fee. Such attacks result in substantial financial damages. A ransomware assault, for example, might result in significant monetary losses due to lost data and missed production, in addition to the immediate casualties.