Fortifying the IT Infrastructure: Challenges and Solutions
To stay in the good books of consumers and regulatory authorities, and grow in spite of security challenges, the insurance sector needs to bolster their IT teams and security capabilities.
FREMONT, CA: Evolving technologies and digitalization have empowered the insurance industry. The same techniques are also leading to a slew of security crises and damages in the industry. It is a data-centric industry, and it handles a lot of sensitive customer information. Hence, any attack can mean data leaks and other subsequent effects. The IT infrastructure in an insurance firm has to be very strong and well protected so that it can defend any attacks.
• Protecting the Reputation
A data breach would mean the transfer of sensitive customer data into the hands of criminals who can use it in wrong ways. This compromises on the trust that customers have on insurance companies and leads to a loss of reputation. Reputation is the mainstay of any insurance company, and so, companies should secure their systems to ensure they build a good reputation and capitalize on it.
• Maintaining Loyal Customer Base
A loss of reputation and trust can handicap an insurance company forever. Customers might not want to continue with the company and shift to other service providers, leading to a major loss of business and loyal customers. Hence, it is imperative that companies safeguard customer data to maintain their customer base.
• Saving the Company from Regulatory Blunders and Heavy Fines
Data security is of paramount importance, and regulatory bodies keep a strict vigil on insurance companies. Compliance is a must, and in case of non-compliance, there are chances that authorities will levy heavy penalties. It falls upon the IT department to ensure compliance and put the best efforts into data protection.
• Not giving Customers, a Reason to Sue the Company
Dissatisfied and angry customers can take action as a consequence of a data breach. Class-action lawsuits can be damaging and costly for an insurance company. Rather than paying compensations later, insurance companies can invest the same in strengthening security and getting good returns.
A layered security strategy, regularly updates systems, strong passwords, and encryption are the best ways to take security measures forward in the insurance sector. The insurance IT teams should take security very seriously not to end up on the losing side.