The insurance industry operates within a hostile threat environment. Faced with a barrage of cyber attacks – from ransomware to data breaches – and burdened by legacy systems that are no longer fit for purpose, insurance carriers and managing general agents (MGAs) must consider a robust core platform solution to remain vigilant to all potential threats, or face dire consequences.
While updating entrenched systems presents a cumbersome challenge, and the choice between a core system overhaul or incremental enhancements keeps many insurers up at night, defending against ever-evolving threats is an even more daunting task.
Governments worldwide, including the UK with its Cyber Security and Resilience Bill and the German insurance supervisor BaFin, have emphasised compliance and IT as a crucial line of defence against cyber attacks. Adopting a platform that meets regulatory requirements while prioritising security is essential for the insurance industry to protect itself from threats and ensure data security.
The surge in data theft
Sensitive data theft remains one of our industry’s greatest fears. According to a 2023 report, cyber crime ranks as one of the leading risks for property and casualty (P&C) insurers. Building resilience against these attacks must be a core requirement for all insurers, particularly as companies handle increasingly sensitive information such as personal identification details and financial records.
A single data breach can result in significant financial losses, regulatory fines, and irreparable damage to an insurer’s public image. Ensuring compliance with industry regulations not only protects against these threats but also helps mitigate potential repercussions.
The core of insurance cyber security
At the heart of modern P&C insurance operations is the core platform. It integrates everything from underwriting, policy administration, and claims processing and its security is essential for protecting the data flowing through every aspect of the business.
A core platform solution, like SID, offers several security advantages:
SID core platform system foundations:
The SID database is accessible only from the SID application server, preventing external access. Each user session is encrypted for security. The platform utilises dynamically generated content on a web page that adapts based on the current activity. Additionally, the password policy can be configured in various ways or synchronised with the client’s existing Active Directory for user login.
Access controls and authentication:
The core platform offers robust access control, tightly regulating who can access data. Security measures such as multi-factor authentication, role- and data-based controls, and real-time logging are in place to prevent unauthorised access. Access is restricted based on user roles, allowing only authorised users to perform tasks such as issuing policies or processing claims. Detailed logs ensure transparency in all user actions.
Regulatory compliance:
With increasing pressure surrounding regulatory requirements, such as GDPR, insurers need to ensure their systems are compliant. With flexible product configuration tools, a core platform solution ensures adherence to industry standards and regulatory mandates. This minimises security and compliance risks while reducing the potential for costly penalties.
As the insurance industry continues to rely on legacy systems amidst the growing sophistication of cyber threats, the need for a robust and secure core platform solution has never been greater. The time to strengthen your defences is now.
Contact us today to discover how our core platform solution, SID, can revolutionise your insurance operations and elevate your security posture.
