Cyber Security for Insurance

All industries are at cyber risk, and this can bring in a lot of operational risks for businesses and individuals. Companies look towards insurance industry to provide risk coverage for the cyber threats they face. In risk there is an opportunity, the need for coverage represents opportunities for insurance companies says as all businesses recognize the importance of insurance for their companies as per
Experts suggest many ideas that the insurance industry can use to improve cyber security and thereby enhance the cyber security insurance market.

Having a dedicated institute for cyber security: Experts suggest that a place should be dedicated where the incidents of cybercrime and the interaction with the insurance is studied and researched. This institute should also be a place where information needed for underwriting is investigated, and ways to reduce should be thought. It could certify people working in cyber security institute as experts. It can also be working with other institutions that can help in developing, testing, running and enhancing a multilevel set of certification programs. That would help the insurance industry have the best technology available for cyber security and helps the insurers.

IT budget: The cyber security of the company much depends on the IT spend and that significantly influences the businesses technology infrastructure. The expenditure on the IT of a company can be an influential factor in the security. Though every business recognizes safety as an essential aspect, how much money they allocate to that area differs. To efficiently fight intrusions and cyber risks many resources have to be employed at various levels and that involves money. The amount of money that businesses use on IT is not enough and should increase if they want to set things right. Companies that are considered highly secure against cyber crimes spend close to 10% of their IT budget on security. The risk of low spend on security is that you are open to hacks and malware attacks.

Training: Irrespective of the hardware and software a company possesses, the differentiator is the people working in it. If the people in the IT department are not trained, the tools and the other resources are not put to good use. There are many jobs vacant in IT security as most of them are unskilled for this work. You should always have employees operate if they are trained, and insurers should invest in training people with a good certification program.

Know about the security of the insured: Examining the security of the insured should not be a one-time activity after they have applied for their application but should be done on a continuous basis. It should be similar to the auto insurance who monitor the telematic devices. The cyber security process should be same. There is technology which can gather information and keep a note of the security of the policyholders. So the insurance company should underwrite if the insured person’s security is in place.

Many companies have been successful in avoiding hacking, the network could have been hacked, but the operations have to shut down. The businesses have to learn the strategies from companies that haven’t been hacked.

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