Where There’s Smoke, There’s Venture Capital
Robert Regis Hyle | July 21, 2014
If we needed any more reason to believe cybersecurity is top of mind for American insurance carriers, we have this: According to CNN: “Venture capital firms are expected to funnel $788 million into early-stage cybersecurity startups this year. That's a 74 percent increase from last year's $452 million, according to PrivCo, a financial data provider on privately-held companies. In 2011, VC firms invested just $160 million in cybersecurity startups. PrivCo estimates the funding will be dispersed among about 40 cybersecurity startups in the early stages of funding.”
While some traditional companies have increased their investment in cybersecurity offerings, the market certainly is ripe for start-ups and the influx of venture capital. After all, who was discussing cybersecurity before 2011? Certainly security analysts were on the beat, but breaches were not getting the attention they deserved, at least until Target came along and U.S. consumers felt violated.
It also comes as no surprise that CNN reports the area of cybersecurity that is gaining the most focus is mobile malware. Cybersecurity companies targeting that particular market are extremely popular with the money men.
Insurers, and all businesses, should welcome this focus as so much business is being conducted today on mobile devices. I spoke with an insurer recently who reports that between 25 and 40 percent of his company’s new business is now being conducted on mobile devices. When you consider that percentage has increased from zero just five years ago, that’s stunning.
As security consultant Bryant Tow wrote on this website earlier this year:
“The biggest obstacle I see with regard to information security is complacency and resistance to change, especially in mature organizations that have been operating a certain way for many years. The attitude, ‘We have always done it this way,’ will land you right out of business.
Budget line items for cyber security are rarely allocated until after the breach. By then it is too late. The more appropriate question is not whether you are a target but are you prepared for the attack when it comes.”
At least insurers understand, through mobile technology, that their customers don’t want to do it business the way they used to. Getting that through their heads will enable them to also understand going mobile is dangerous in today’s world if you don’t have some protection.
- 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