Cyber security is a rising concern for insurers in light of their increased vulnerability via digital channels to theft or attack on the personal customer data on which they depend. Although the threat is not new, the frequency of high profile, disruptive and damaging security breaches is increasing and insurers have to respond. Around the world, regulators are becoming more interested in understanding controls to ensure data privacy is respected and customers are fairly treated.
Overwhelmingly, insurers and intermediaries are focused on managing risk, with the greatest proportion of our respondents seeing data security as one of the top three business areas impacted by digital, followed by customer relationship management. Not surprisingly, this drives investment, with more of our respondents identifying investment in data and cyber security than any other area of the business.
Insurance companies should shore up their defenses against the rising threat of cyber crime.
Frontiers in Finance examines rising cyber insurance sales and insurers’ challenges managing cyber risk and winning in the cyber policies market.