Insurance and Security Part 2: Security, Data Breaches and Cyber Threats
Mark Breading, partner at Strategy Meets Action, and Charlie Hanna, director of Hyland Software’s Domestic Insurance Solutions Group, sit down and talk about what insurers thinking about with respect to data breaches and cyber threats.
Mark Breading, Partner at Strategy Meets Action
Charlie Hanna, Director of Hyland Software’s Domestic Insurance Solutions Group
Analyst Interview (Part 2): Security, Data Breaches, & Cyberthreats
It seems like we see data breaches every day and there’s just such a wide variety of threats out there – both internal and external – that companies need to manage. What’s your perspective on what’s happening in terms of cyber threats and what insurers are doing?
I think it’s a huge concern, particularly when you think about how that threat affects one of their biggest initiatives, which is becoming more transparent to the insured. So being able to both to the distribution network and to the ultimate insured; be able to provide the transparency the information they need but to do it in a secure fashion, dealing with that data outside the firewall, making sure that the data gets to the right people.
It’s not even just outside the firewall either because I think about half of all breaches take place internally. Not all malicious, there’s accidental data loses, which is a big potential problem, or just, you know, something that happens internally that an employee misuses data, let’s say. So, you know, there’s so important to manage every component of data you have and who should be authorized for that, what they can do for that data, and who they can route it to. That’s a complex picture.
The security and the way that we can granularly provide information to the people that need to get it but also protect it in the context where it needs to be protected.
One of things that we’ve seen in our research is as we track technology projects over the years, over the last decade, security has continued to rise towards the top in terms of IT spending and technology projects for 2018. Now, security ranks as the number two project area for P&C companies on the technology side, life companies because they were to deal with anti-money laundering and they have a lot of financial transactions that are large, had to deal with a lot of the security issues earlier, especially holding a lot of PII as you mentioned on the financial side for further customers.
It also becomes more challenging too when the intent of both of these businesses – both P&C and life – is to become a better more digital friendly organization to the people they do business with, but there’s this distribution network or the ultimate insured and I think it’s further becomes more complicated when you look at all of the technologies that are interacting and working together, So, having that baseline security around the data that’s being exposed to these other primary systems is really important.