The author of this article is Bahaa Abdul Hussein. As a Fintech expert, Bahaa Abdul Hussein always shares his experience on various platforms. This time he talks about how cybersecurity can help insurance companies.
There was a time when insurance companies were known for its reams of paperwork. Today most insurance companies have gone online to ensure customer convenience. This has brought with it serious cybersecurity risks. 2020 was when ransomware attacks by cyber criminals led to a loss of $370 million.
Insurance companies who offer a shield to customers need a cybersecurity shield to safeguard themselves from hackers. Some key issues involved here are:
Cloud hosting
Cloud hosting has picked up, and the main reason is the enhanced security it offers. 94% of businesses said they are now more secure after shifting to the cloud. The security features of cloud hosting include:
1) In-built security
There is no extra software needed for security. Cloud hosting companies have stringent security systems to safeguard their servers from hackers and other cyber criminals. Companies like Microsoft have invested more than a billion dollars to keep their cloud service secure. This shows the importance of in-built security.
2) Complete data protection
Data protection is available for insurance companies at all stages. Insurers use apps where they allow customers to submit data, which is then transferred to the server. Cloud security ensures data is secure at each of the stages. The use of encryption and authentication has helped in this.
3) Role-based access
Users have access to the cloud system based on their roles. They can only access that part of the system to which they are supposed to be allowed. Cloud hosting allows clear definition of roles. This allows access to be controlled, preventing any user from trying to hack into the system.
4) Traceability of lapses
In case any security lapse occurs, the system is so robust that tracing is possible. It is easy to track down the origin of the lapse. The stakeholders concerned would get alerts, so they can take action. It also allows for making corrections in the system to prevent the lapses from recurring.
5) Lower costs
With cloud hosting, insurance companies need not worry about having a security team with resources. The cloud hosting service would take care of it. This leads to a lot of savings, thus reducing costs.
The article has been published by the editorial board of the Fintek Diary and is authored by Bahaa Abdul Hussein. Happy Reading. For more information please visit www.fintekdiary.com
