Insurance companies have become a prime target for cyber attackers due to the abundance of valuable personal, medical, and corporate data that they possess. These cyber criminals are increasingly focusing their efforts on the insurance industry, as evidenced by the recent surge in attacks. In 2023 alone, multiple insurance companies fell victim to cyber attacks, including Sun Life, Prudential Insurance, New York Life Insurance Company, and Genworth Financial. These attacks were carried out through a cyberattack known as the MOVEit file transfer attack.
However, MOVEit is not the only ransomware attack that has targeted the insurance industry. Point32Health, the parent company of Harvard Pilgrim Health Care and Tufts Health Plan, experienced a ransomware attack in April. Additionally, NationsBenefits reported being victimized by the Cl0p ransomware gang. The most significant attack in the United States targeting an insurance company affected 9 million patients of Managed Care of North America (MCNA) Dental. This attack was carried out by the LockBit ransomware.
According to consulting firm Deloitte, cyber attacks in the insurance sector are escalating at an alarming rate. As insurance companies transition to digital channels in order to enhance customer relationships and expand their product offerings, they are becoming increasingly vulnerable to cyber threats. This shift towards digitalization has driven a greater investment in core IT systems, as well as enabling platforms that facilitate various insurance processes.
The motivations behind these attacks are multifaceted. One obvious incentive is the profitability of obtaining personally identifiable information and personal health information for resale. However, there are also more sinister motives at play. Insurance applications, for instance, contain a plethora of valuable information that can be targeted by cyber attackers. Marc Schein, a risk management consultant at Marsh McLennan Agency, highlights the amount of insurance a company is purchasing as a potentially useful piece of information for ransomware attackers. By analyzing insurance applications, attackers can identify network security weaknesses and target vulnerable companies.
Patricia Titus, the Chief Privacy and Information Security Officer at Markel Insurance, emphasizes that insurance companies should not only focus on protecting their clients’ data but also their own. Markel is exploring technologies that can effectively microsegment its networks, thereby limiting the ability of attackers to move laterally within the network once they breach the initial defenses. Titus also warns that human data is highly sought after by cyber attackers. Access to insurance applications and approved policies can provide valuable insights into potential targets. Businesses not only insure high-value items but also safeguard trade secrets, private information about executives, and errors and omissions that may occur during business transactions. Consequently, the breach of insurance policies or applications could expose a vast array of valuable data.
To mitigate these risks, Schein advises companies to only send encrypted files when submitting insurance applications. This precaution ensures that intercepted data cannot be read by cyber attackers during transmission.
In conclusion, the insurance industry has become an attractive target for cyber attackers due to the abundance of valuable information it possesses. The recent surge in attacks highlights the need for insurance companies to enhance their cybersecurity measures and protect both their clients’ data and their own. By recognizing the vulnerabilities within insurance applications and implementing strong encryption protocols, these companies can safeguard themselves against the evolving threat landscape.