ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

Three key security challenges facing the Australian insurance industry 

By Shannon Williams
Thu 12 May 2022

Insurance companies must ensure they proactively address security challenges and protect the privacy of customer data, according to Stelvio Australia.  

Modern technologies have brought a wealth of benefits to the insurance industry including improving the customer experience and the way businesses operate. New technologies can streamline processes, complete assessments faster, save employees’ time and costs, and let insurers and assessors deliver a more positive experience for the customer. 

Stelvio Australia says that while modern technologies provide transformational improvements, they do create new risks. 

"Modern technologies are transforming the Australian insurance industry. These solutions deliver returns on investment that include cost savings and productivity gains as well as improved business reputation, customer satisfaction, and assessment accuracy," says Yannick Gigure, general manager, Stelvio Australia.

“However, as cybercriminals become more sophisticated and businesses of all sizes become targets, it’s essential that the insurance industry considers how to best protect customer and company data when using those new technologies," he says. 

"As such, they must establish compliance measures to mitigate the risk of a security breach.”  

Between July and December 2020, malicious or criminal attacks accounted for 58 per cent of the breaches notified to The Office of the Australian Information Commissioner (OAIC) under the Notifiable Data Breaches (NDB) scheme and were the leading cause of data breaches. In that same period, 38 per cent of breach notifications were due to human error.

A report from the Australian Cyber Security Centre (ACSC) found that the barriers for small to medium-sized business to implement good cybersecurity practices include:  
A lack of dedicated IT staff  a lack of planning for how to respond to cybersecurity incidents   
Business owners failing to identify security weaknesses, and unsure where to begin  a lack of education on the risks of a cyber incident and the impact it can have on the business

There are currently three major challenges impacting on the Australian insurance industry as a result of emerging technologies:  

1. Data theft and ransomware 

As technology platforms become increasingly cloud-based and interconnected, the risk of data theft via ransomware increases. Insurance companies must remain vigilant about securing sensitive data as cybercriminals look to steal these types of records, particularly customer, employee, and financial information. Compromised information as a result of a ransomware can shut down the ability to deliver key services. And, the loss of data via a breach leaves insurers’ businesses at a high risk of reputational damage, financial and investment loss, and potentially financial penalties if a company has not complied with the Australian Privacy Principles (APPs).  

2. Fraud  

The insurance industry already has a high risk of fraud. With the introduction of automated claims processes, cybercriminals have new ways to exploit insurance companies. The Insurance Council of Australia reports that insurers detected $280 million in fraudulent claims across all insurance classes excluding those relating to health insurance or personal injury in 2017. This number is expected to climb as fraudsters, and even legitimate customers, take advantage of gaps created in virtual systems. However, using software that helps detect potentially fraudulent activity and alerts the relevant parties can help to protect insurers and partners.     

3. Compliance  

The ACSC has implemented compliance responsibilities to ensure that businesses remain accountable for protecting customer and sensitive data. All businesses that work with sensitive data must be aware of and comply with NDB legislation and the Privacy Act. Specific industries may also need to comply with other legislation or industry standards. All areas of the business, including specific divisions that may deal with different industries, must comprehensively understand the relevant privacy legislation and data compliance requirements and ensure secure workflow platforms adhere to these requirements. When considering security practices, it’s also important that insurance companies address the potential risk that third-party suppliers may introduce as organisations can face a security risk if their suppliers have non-compliant systems.  

“Security challenges and compliance requirements should be front and centre when insurance companies implement new technologies," says Gigure. 

"Data breaches will only increase as cybercriminals become more sophisticated and the potential attack surface expands through the use of new technology," he says.

“Technology will remain a vital element for insurance businesses to remain competitive, timely, and productive. However, this means that they also need to consider the security impacts of new technologies in order to survive in today’s business environment.”  

Related stories
Top stories
Story image
DDoS
RedShield now leveraging AWS to scale cybersecurity services
The company's new architecture includes always-on DDoS defence capabilities, with auto-detection and auto-scaling attack mitigation.
Story image
ChildFund
ChildFund launches new campaign to protect children online
ChildFund says WEB Safe & Wise aims to protect children from sexual exploitation and abuse online while also empowering them to become digitally savvy. 
Story image
Remote Working
Australia’s remote workers face connectivity and security issues
SOTI's new report finds better video conferencing technology and improved security measures are top concerns for remote workers in Australia.
Story image
Amazon Web Services / AWS
RedShield leverages AWS to scale cybersecurity services
"Working with AWS gives RedShield the ability to mitigate significant application layer DDoS attacks, helping leaders adopt best practices and security architectures."
Story image
Digital Transformation
Pluralsight and Ingram Micro Cloud team up on cloud initiative
Pluralsight has teamed with Ingram Micro Cloud to build upon cloud competence and maturity internally, and externally support partners’ capabilities.
Story image
Microsoft
New Relic enters multi-year partnership with Microsoft Azure
New Relic has announced a strategic partnership with Microsoft to help enterprises accelerate cloud migration and multi-cloud initiatives. 
Story image
WolfVision
WolfVision announces new range of visualisers
WolfVision has announced a new range of visualisers to help meet multiple industry demands for remote learning and educational solutions.
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Gaming
Hands-on review: WD_Black SN770 NVMe SSD Game Drive
Western Digital expands its WD_Black range of NVMe SSDs with the WD_Black SN770 Game Drive.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Fortinet
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
Surveillance
Motorola Solutions acquires Videotec S.p.A for security portfolio
Motorola Solutions has acquired Italian ruggedised video security company Videotec S.p.A, along with its portfolio of highly versatile cameras.
Story image
Wireless
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Digital Transformation
How to modernise legacy apps without compromising security
At a time when digital transformation has become central to business, even the most important applications come with a ‘use-by’ date.
Story image
SAS
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Alteryx
Decision Inc. Australia enters partnership with Alteryx
Independent data and analytics consultancy Decision Inc. Australia has partnered with automated analytics company Alteryx, expanding its offering to clients.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Phishing
KnowBe4 celebrates reaching 50,000 customers worldwide
KnowBe4 has reached the milestone of 50,000 customers, adding nearly 2,500 in the first quarter of 2022 alone.
Story image
Apple
Apple previews new features for users with disabilities
Apple says new software features that offer users with disabilities new tools for navigation, health and communication, are set to come out later this year.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Testing
Google and CSIRO use AI to help protect the Great Barrier Reef
Google has partnered with CSIRO in Australia to implement AI solutions that help protect the Great Barrier Reef.
Story image
Manufacturing
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
Gaming
PNY launches XLR8 Gaming EPIX memory products in A/NZ
PNY has launched its XLR8 Gaming EPIC-X RGB™ DDR4 Silver 3200MHz and 3600MHz memory products in Australia and New Zealand.
Story image
Workato
Workato unveils enhancements to enterprise automation platform
"The extra layer of protection with EKM, zero-logging, and hourly key rotation gives customers a lot more visibility and control over more sensitive data."
Story image
Cloud Security
Aqua Security createa unified scanner for cloud native security
“By integrating more cloud native scanning targets into Trivy, such as Kubernetes, we are simplifying cloud native security."
Story image
Mobility
Tyson Beckford partners with Element Case on new AppleWatch band
Celebrity Tyson Beckford has collaborated with STM Brands' Element Case brand to create a rugged new accessory.
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
Cybersecurity
Noname Security partners with Netpoleon to target API issues
Specialist API security firm Noname Security has appointed Netpoleon as its distributor in Australia and New Zealand.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Sustainability
Legrand unveils Nexpand, a data center cabinet platform
Legrand has unveiled a new data center cabinet platform, Nexpand, to offer the necessary scalability and future-proof architecture for digital transformation.
Story image
Nozomi Networks
Nozomi Networks, Siemens reveal software integration
Nozomi Networks and Siemens have extended their partnership by embedding Nozomi Networks’ software into the Siemens Scalance LPE local processing engine.
Story image
Artificial Intelligence
SAS announces new products amid cloud portfolio success
Analytics and AI company SAS is deepening its broad industry portfolio with offerings that support life sciences, energy, and martech.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Cybersecurity
Hard numbers: Why ambiguity in cybersecurity no longer adds up
As cybersecurity costs and risks continue to escalate, CEOs continue to struggle with what their investment in cyber protection buys. Getting rid of ambiguity becomes necessary.
Story image
Cybersecurity
Managed service providers: effective scoping to avoid costly vendor pitfalls
Managed security services are outsourced services focusing on the security and resilience of business networks.
Story image
PaaS
New digital traffic light system to tackle construction defects
Smarter Defects Management launches its PaaS digital system and says it will revolutionise managing defects in the construction industry.
Story image
Ransomware
A third of companies paying ransom don’t recover data - report
Veeam's report finds 76% of businesses who are victims of cyberattacks paid the ransom to recover data, but a third were still unable to get their information back.
Story image
Cybersecurity
BlackBerry offers Kaspersky replacement cybersecurity for the channel
BlackBerry advises that users of Kaspersky software in Australia and New Zealand undertake a rigorous risk analysis of their current security posture.
Story image
Data solutions
South Australia state satellite makes significant progress
South Australia’s first state satellite has successfully completed the Critical Design Review (CDR), moving it closer to providing tangible data solutions.
Story image
Artificial Intelligence
AI-based email security platform Abnormal Security valued at $4B
"A new breed of cybersecurity solutions that leverage AI is required to change the game and stop the rising threat of sophisticated and targeted email attacks."