What are the cybersecurity vulnerabilities the Insurance Industry faces?
Insurance Agents, Advisors, Brokers, and Underwriters all face threats from human error, hard drive malfunction, and cyberattackers using malware, phishing expeditions, and data theft to steal treasure-troves of client personal and financial information. Additionally, they are now all included under mandated cybersecurity compliance.
Insurance companies communicate with clients and pass everything from social security numbers to bank account information via electronic methods. Your customers information must be protected in transit and in your possession.
Not only do you have to meet your industry rules, but in most cases, you must meet the industry rules of your clients as well.
What cybersecurity regulations affect Business Advisors?
Federal Laws that apply to you:
Bank Secrecy Act (BSA) (If you conduct transactions on behalf of your client)
Health Insurance Portability and Accountability Act (HIPAA) (if you have clients in the healthcare industry)
Sarbanes–Oxley Act (SOX) (if you have clients that are publicly owned)
What are the consequences of a data breach?
Financial Loss
Reputational Damage
Operational Downtime
Legal Action
Loss of Sensitive Data
60% chance of going out of business!