Category: Technology

The Importance of Having a Data Security Strategy for Insurers

Posted by: Agent Hub

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As the old expression goes, “It’s better to be safe than sorry.” Yet, too many companies and financial institutions have fallen short of protecting themselves from hackers and data breaches in recent years. Home Depot, Target, J.P. Morgan Chase and Anthem Healthcare are near the top of the list of businesses that have struggled recently to overcome data security issues. While many small businesses believe they are doing enough to protect themselves, it is important to take measures to ensure this is actually the case.

Why a Data Security Strategy is Important

Forward progress, hard work, sales growth and branding can all be greatly threatened and damaged by a data security breach. Although some companies are targeted specifically, no one is immune to the potential of data risks, especially now that the digital age has fully taken over.

Insurance companies, which are supposed to be the experts in risk management, and independent agents often hold a great deal of information about policyholders, especially sensitive information like personal and financial data. Should any business be affected by one or more data breaches, this could lead to a loss in revenue, legal problems, penalties and thousands of dollars in recovery costs.

Protective Measures That You Should Take

One of the most important steps a business should complete first is creating aninformation security strategic plan. The plan should describe how the company will assess the existing status of security information and security measures, as well as provide ways to more safely manage data, uphold compliance standards and better prepare for security breaches should they ever occur.

Higher-level leaders should also be regularly involved and updated on these procedures to ensure risks are lessened for the company. Although IT personnel should begin to implement these processes and carry out the bulk of the security strategic plan, those high-level officials should educate other staff members about effective management methods as well.