Cybercrime: Are Insurance Companies Protected?

10 Jun

Technology providers are constantly encouraging business owners to invest in their online presence as well as in the use of so-called advanced tools. In the insurance industry, some insurance providers are now fearing that these very tools could spell disaster for their business.

According to a survey published by the London-based think tank, the Center for the Study of Financial Innovations, it was revealed that there are growing levels of anxiety within the industry. The said survey that included 836 insurance practitioners expressed their concerns on several subjects. They were fearful that they were facing risks in the areas of change management, cybersecurity, technology, interest rates, investment performance, regulation, macroeconomy, competition, human talent, and guaranteed products. The previous concerns were mentioned chronologically, with the top concerns mentioned first.

Among those that were mentioned, cybersecurity is also a growing concern for other industries. This should no longer come as a surprise since the retail market for one involves a lot of money where one could easily make a profit by engaging in cybercrime.

While there are problems related to cybersecurity, it is still strongly suggested by industry experts that businesses should continue to make available their products and services through online channels if they wanted to increase their profit. In fact, some are even suggesting that insurance companies should sell their products and services such are automotive insurance, chartered liability insurance, and educational insurance online because this is suggested to not only increase their income, but also is a great means to increase their network.

The cybersecurity scare is backed by stats. According to Donald Trump, cybersecurity damage might hit $6 trillion annually by 2021. Analysts on the other hand predicted that there might be a shortage of cybersecurity personnel by 2019. Microsoft estimates that there will be about 4 billion people using the Internet and with it will also create an influx of hackers.

While the reports seem scary for the insurance industry as well as the others in the market, experts have yet to establish stats on the possible development of technology against cybercrime in the future. Maybe it’s still too early to be fearful of things that not yet happened? For now, insurance companies should rest easy that there are companies that can help them fight cybercrimes like Cisco and IBM.