Supply chain security should be recognised as a priority for the Insurance sector
As the world becomes increasingly interconnected, the risks associated with supply chains have grown significantly, and the insurance sector is no exception. Recent data breaches have highlighted the threat originating from third parties and supply chains, with attacks targeting insurance firms increasing in both frequency and severity. According to a report by Identity Theft Resource Center, the number of supply chain attacks surpassed the number of malware-based attacks in 2022 by 40 percent, affecting over 10 million people and 1,743 entities.
In this blog, we will explore the reasons why supply chain security is crucial for the insurance sector and how insurance firms can mitigate the risk.
Cyber security threats to the Insurance sector:
Insurance firms hold highly sensitive data, making them a prime target for cybercriminals. While the threat of data breaches and ransomware attacks is generally recognised by the sector, the place where the attack originates now also needs to be taken into consideration. In a recent breach, the Davies Group, a professional services and technology partner for the insurance sector, saw services to its UK operations hit by a cyberattack.
As the Davies Group connects directly to customers’ systems, it is likely that cybercriminals attacked the company to gain access to multiple companies’ data, many of which were in the insurance sector. The initial breach took place in July 2022, but the group was still dealing with the consequences to customers’ systems and the backlog to services at the beginning of 2023.
Closing the backdoor
To ensure that front-line defence spending is not negated by vulnerabilities in their partners’ networks, insurance firms need to get a grip on where these potential vulnerabilities lie and shut them down. The traditional methods of checking on partners’ cyber security defences are based almost entirely on trust. However, in an age where a successful breach can have a huge impact on a business, insurance firms have to do more to ensure their partners are doing all they can to shut down vulnerabilities.
AI-powered solutions
Some insurance firms are turning to AI-powered solutions to gain a 360-degree, consistent, real-time view of potential vulnerabilities within partners’ systems. This means that any “open-doors” can be quickly shut before cybercriminals can take advantage. It also means that companies can consistently monitor vulnerabilities as they become apparent, keeping pace with the evolving threat landscape.
Free consultation and vulnerability report
The urgency to gain an understanding of potential vulnerabilities has led Northdoor, an insurance and technology consultancy, to offer companies a free consultation and vulnerability report (on themselves and three partners) to start the process of closing the backdoor, shutting down vulnerabilities, and keeping cyber criminals out.
Why supply chain security is crucial for the Insurance sector
Insurance firms must recognise the growing threat originating from third parties and supply chains and take measures to ensure supply chain security. By adopting AI-powered solutions and gaining insight into potential vulnerabilities, they can keep pace with the evolving threat landscape and mitigate the risk of cyberattacks. The Davies Group breach highlights the nature of the threat facing the insurance sector, and insurance firms must act now to ensure their partners are doing all they can to shut down vulnerabilities and keep their customer’s data safe.
Don’t wait until it’s too late. Take advantage of Northdoor’s offer for a free consultation and vulnerability report to start securing your insurance supply chain today.
The original article was published on 3 March 2023, in Insurance Edge, Supply Chain Security has to be a priority for the Insurance Sector.