40 Percent of Insurers Suffered Security Breaches in Past Year

Despite the rising cost of initiatives, financial institutions remain determined to thwart security risks, according to a new report from Deloitte.

Insurance Networking News, September 14, 2012

Chris McMahon

25 percent of financial institutions suffered a breach in 2011—within insurance, that percentage is even higher—making security is a top priority for the financial services industry, according to Deloitte’s “2012 Global Financial Services Industry Security Study.”

Organizations surveyed said they are “more proactive in implementing innovative security measures and creating greater awareness within their business,” despite the costs of improved security initiatives, Deloitte said in a press release.

Other insurance-related highlights include:

• Growing security risks: 40 percent of the 46 major insurance organizations experienced breaches in the past 12 months

• Budget/resource constraints: Insurers report lack of sufficient budget and other resources were the top barriers to effective information security

• Growing demand for mobile devices: Employees demand more mobile and virtual services

• 80 percent of respondents support employee-owned or corporate-owned mobile devices

• Threats from mobile devices: 45 percent have experienced breaches in the past 12 months

• Managing privacy: Nearly 80 percent have one or more dedicated resource for managing privacy in addition to an IS program

• Security initiatives: Data Protection and IS Governance are the top two security initiatives for insurers; 57 percent said they are adequately equipped.

Deloitte also found that Insurers are “bracing for the impact of more stringent consumer financial laws as well as the risks associated with newer technologies to meet the growing demand for virtual operations.”

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