How can insurance companies protect customer data while maintaining access?

1 Encrypt data at rest and in transit

One of the basic measures to safeguard data is to encrypt it, both when it is stored in databases or servers, and when it is transferred over networks or devices. Encryption means converting data into a code that can only be read by authorized parties who have the key. This way, even if data is stolen or intercepted, it cannot be easily deciphered or exploited by hackers or malicious insiders.

2 Implement access control policies and procedures

Another way to protect data is to limit who can access it, and for what purpose. Access control policies and procedures define the roles and responsibilities of different users and groups, and the level of permission they have to view, edit, or share data. For example, an underwriter may need to access customer data to assess risk and price policies, but not to export or copy it. Access control also involves verifying the identity and authorization of users, using methods such as passwords, biometrics, or multi-factor authentication.

3 Monitor and audit data activities and incidents

A third tip to secure data is to track and record what happens to it, and who is responsible for it. Monitoring and auditing data activities and incidents help insurers detect and prevent unauthorized or suspicious access, misuse, or breach of data. For example, insurers can use tools such as log files, alerts, or dashboards to monitor data access, usage, or transfer patterns, and identify any anomalies or deviations. Auditing also helps insurers comply with regulatory requirements, such as reporting data breaches or disclosing data practices.

4 Educate and train staff and customers on data security

A fourth tip to safeguard data is to raise awareness and knowledge on data security among staff and customers. Educating and training staff and customers on data security helps insurers foster a culture of responsibility and trust, and reduce the risk of human error or negligence. For example, insurers can provide staff and customers with guidelines, best practices, or courses on how to handle data securely and ethically, such as using strong passwords, avoiding phishing emails, or deleting sensitive data.

5 Use cloud-based or third-party data solutions

A fifth tip to protect data is to use cloud-based or third-party data solutions that offer high levels of security and reliability. Cloud-based or third-party data solutions can help insurers store, manage, or analyze data more efficiently and cost-effectively, without compromising on data protection. For example, insurers can use cloud-based or third-party data solutions that have robust encryption, access control, monitoring, auditing, or backup features, and that comply with industry standards or regulations.