Cyber Security Gains More Regulatory Attention
Robert Regis Hyle | March 02, 2015
There are two words that throw the fear of god into the face of any insurance carrier: regulatory compliance. The big reason for the woe these words bring to carriers is that instead of getting easier over time, compliance has become even more difficult.
The reasons are twofold. The regulatory landscape is expanding constantly. Insurers not only deal with the traditional group of regulators from the 50 states, but they have been forced to focus more energy on what the federal government is up to. In addition, as insurers seek to grow they are looking to global markets and that creates another set of issues.
The second regulatory challenge involves the privacy of a customer’s data and securing it from outsiders. Regulators never feared data attacks on brick and mortar insurance carriers, but no one operates in that manner anymore. Data is out there waiting to be snatched from thin air and that troubles not just regulators but all of us.
As Deloitte’s Howard Mills explains, the traditional job of regulators involves consumer protection and that has brought scrutiny to how carriers secure a customer’s most important data. Insurers should relish that attention because the second part of unsecured data is the damage that befalls insurers when customers learn their insurer’s data systems have been breached.
Insurers can deal with unhappy customers and there are effective measures to appease them, but the embarrassment to the insurer’s brand is becoming even more important as consumers make a mental note that a breached insurance carrier may not be the company where you wish to place your business.
Insurers have enough concerns of their own in data security that some may see the strong regulatory push as being heavy-handed, but regulations are likely to become more complex and burdensome in the short term. The New York Department of Financial Services last month issued a report on cyber security that it believes will strengthen hacking defenses for carriers.
The New York DFS surveyed insurers with respect to cyber security and found a wide array of factors affect the sophistication and comprehensiveness of their cyber security programs. While many believe the top tier of carriers have the most sophisticated defense systems, the DFS study did not find that to be the case.
In short, regulators are going to keep an even closer eye on what is happening in cyber security and Mills predicts that it won’t take long for the other states to follow.
- Legacy Systems Are Dead. Really? Don't Count On It.
- Now Accepting Nominations for the 2019 ITA Bridge Awards
- It's time to register for ITA LIVE!
- Registration is Now Open for ITA LIVE 2019!
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Optimum General Selects Guidewire InsurancePlatform for Core Operations
- Blue Cod Technologies Announces Corporate Name Change to Activer Solutions
- MVP Advisory Group Names Data & Analytics Partner
- Billing Core to Insurers' Service Strategies; Novarica Profiles 15 Vendor Solution Providers
- Million Women Mentors Recognizes MEMIC’s Advocacy
- Guidewire Software Announces First Quarter Fiscal 2019 Financial Results
- Patra Corp Expands Successful Initial Phase of Patra Academy, Partners with Military Spouse Employment Program
- Ecclesiastical Insurance Group Selects Sapiens’ Property and Casualty Insurance Suite as its New Core Platform
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA LIVE 2019
The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.
ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.
Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!
BLOGS AND COLUMNS
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE