Why Are Insurance Agencies Prone To Cyber Attacks?

2020 has represented a turning point for cyberattacks and cybersecurity. In fact, while viruses and cybersecurity incidents such as data loss and ransomware have been happening for years, the pandemic has caused a sharp rise in cyberattack number, intensity, and consequent losses. 

And, now that businesses have become more reliant on remote teams, technology, and cloud systems, attacks are bound to continue growing in severity and frequency. Among other industries, insurance companies and practices are at the greatest risk of cyberattacks. Here is all you need to know about the reasons for cyberattackers to target insurance companies – and ways to protect your business’s assets from them. 

Access To High Quantities of Data

Data has become one of the most important assets for all businesses. Thanks to data, you can better understand your clients and the target market, you can foresee important trends, and you can create a product that better works for your specific audience. 

Additionally, it is through data that you can win over your consumers’ loyalty and provide customized service. 

In particular, insurance companies have access to prestigious data. In fact, they don’t just store the data of millions of customers, they also keep and use the data of millions of employees. And, the data collected by insurance companies is of much higher quality than the information collected by other industries. In fact, cybercriminals aim to find personal data, identities, and financial information – all of which are gathered within insurance agencies’ systems. 

A Thriving Sector

While the insurance sector is one of the worst-hit by cyberattacks, it is not the only industry. In fact, since the beginning of the pandemic, other high-target industries include:

  • Healthcare practices and medical companies
  • Banking, credit, and other financial institutions
  • Government and military organizations
  • Education and schools
  • Energy providers

These industries are targeted for many reasons. Firstly, these sectors are the ones that rely most heavily on customer data and the ones bound to store the highest quantity of sensitive, personal, or financial information. Additionally, the industries above are thriving and enlarging, which means that they have a much greater audience reach. 

It Relies On The Employees’ Input

Another reason that makes insurance institutions such a high target for cyberattacks is that the whole industry relies on employees and their services. To this, there are two important consequences to consider:

  • Employees have started to work from home during the pandemic, using less-than-secure systems and devices
  • The great majority of data loss, ransomware, and identity theft issues derive from human error. 

Prevent Cyber Attacks and Data Loss 

Cybersecurity systems are becoming increasingly safer and sophisticated, able to protect changing systems in an agile way. Nonetheless, the strategies used by cyber attackers are becoming even more ingenious and able to penetrate innovative systems. 

In turn, you might have put in place all the security systems, barriers, and prevention strategies you have available to you – and yet these might not be enough. Therefore, it is essential to have a “zero-trust” policy and a “not if, but when” mindset. 

That is why it is essential to have a contingency plan in place to prevent data loss and contain the damages. Get in touch with Alt-Tech to learn more about data recovery and backup systems.