The insurance industry is fueled by data: in order to calculate a prime, insurers need to know their customers’ data, ranging from personally identifiable information (PII) to patrimony and health records. This information is also treated by brokers, underwriters, state attorneys, and other actors. Therefore, the need for internal security measures and third party risk management (TPRM) for insurers is evident.
Organizations that provide insurance hold data about every aspect of our lives, and considering its confidentiality, availability, and integrity, vendor risk management can make a huge difference. The insurance industry does not only store large volumes of data, but they also rely on different technologies (often outdated) as well as third party vendors (and their fourth parties).
As a result, they make attractive targets for cybercriminals. In fact, a large healthcare insurer paid $6.85M to settle a massive data breach from 2015, which affected 10.4 million people.
In addition, the insurance industry and its third-party ecosystems are heavily regulated, with federal and state regulatory agencies defining standards and best practices. They need to comply with the OIG, OCC, FFIEC, and CFPB; meet reporting and auditing requirements from state regulators; and occasionally comply with HIPAA.
As outsourcing in the insurance industry increases, so do business complexity and regulatory requirements. At the same time, best practices continue to evolve and insurers expand their efforts to ensure risk management processes remain effective, not only to comply with regulations, but also to protect the interests of customers and stakeholders.
So how can insurance companies leverage third party risk management (TPRM) to increase security beyond their perimeter, secure their vendor ecosystems, and prevent a data breach?
Third party risk management can help insurance companies track dozens or hundreds of vendors to make sure they don’t expose the organization to unnecessary risk. It also provides insight into their fourth parties, which is critical in an industry where sensitive data runs through multiple hands.
ThirdPartyTrust’s cloud-based platform is designed to help insurance and other financial services firms manage third party vendors in compliance with increased and expansive regulatory expectations.
It automates your vendor documentation intake, risk assessment and monitoring processes, helping you understand, manage, and mitigate the risks posed by your third party vendors throughout the lifecycle of the relationship.
The covid19 pandemic has forced the insurance industry to digitize more processes and adopt more technology. More change has occurred in the past year than in the previous decade and the pace is only accelerating. Are you on track to adapt to evolving customer behaviors?
With a growing customer base, the information security team at Pekin Insurance was experiencing limitations in the amount of vendor risk assessments they could perform.
With ThirdPartyTrust, they automated their workflow and reduced the assessment turnaround by 50%, whith a 3x ROI realize in the first six months.
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