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Seven Ways to Master Cyber Resilience in Insurance

By Finserv MARKETS - Apr 26,2019
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A comprehensive study undertaken by leading cyber security consultant Accenture Security estimates that mastering cyber security is a slow and steady process and it can take at least two to three years for insurers to achieve mastery in cyber security. In this article, we have outlined seven parameters that are essential in mastering cyber security: –

  1. Identify Breaches Quickly – It is critical to contain the damages caused by a cyber-reach within hours. However, it is seen that most insurance companies often take around 30 days to remediate a breach.
  2. Involve Parties Beyond the Immediate Cyber security Team – As per the study by Accenture Security, a company’s cyber security team were only able to identify a few cyber breaches. Most of the attacks were identified internally by the company’s employees.
  3. Focus On the Right Performance Measures – Most insurers focus on minimizing underwriting losses when managing risks. However, when managing cyber risks insurers need to analyse the threats meticulously and have a broader view on risk management which includes operational risk metrics as well.
  4. Keep an Eye Out for Internal Threats – As per the study, 72 per cent of insurers ranked malicious insiders as the most frequent source of cyber-attacks. Companies that employ a large workforce and deal with third-party contractors are especially at risk.
  5. Bolster Cyber security Standards Across Your Ecosystem – Cyber ecosystems are critical for insurers’ ability to provide services that are highly relevant and go beyond the regular insurance transactions. Also, in a broad ecosystem where insurers need to share data with partners brings in tremendous risk as they have to manage a massive number of connection points.
  6. Test and Stress Test – Companies need to be more persistent and rigorous to avert breaches from even the most highly motivated cyber attackers. Hence, the only way to truly understand your defences is to actively test them. Bug bounties or white-hat hacking bounties are some of the ways that companies can stress-test their defences.
  7. Don’t Overemphasize Perimeter Controls – As mentioned above, malicious insiders are the most frequent source of cyber security breaches. Additionally, insiders may accidentally expose their organization through phishing or social engineering. Having advanced perimeter controls cannot compensate for weaker security elsewhere. Therefore, insurers must consider the entire attack chain and bolster up defences at every step.

By focusing on these seven capabilities, it is possible to master cyber resilience and reduce cyber risks to a great extent. Hence, going forward, Cyber Insurance or Digital Insurance will become more important than ever. No matter how stringent your cyber security measures are, there is going to be some threat on the horizon. However, if you have Cyber Insurance, you can stay financially protected against the potentially huge losses caused by cyber breaches. Bajaj Allianz Individual Cyber Safe Insurance available on Finserv MARKETS provides coverage against cyber-attacks like email spoofing, phishing, malware, ID theft, data breach and much more. To know more or buy Bajaj Allianz Individual Cyber Safe Insurance visit Finserv MARKETS.

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522