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Surfing the Seas of Risk: Cybersecurity Challenges in the Insurance Industry

The insurance industry, a bedrock of financial stability, has been facing turbulent waters as it faces an array of risks. Recent research conducted by PwC and CSFI from May to August 2023, known as the Insurance Banana Skins 2023 report, shed light on the pressing cyber risks and concerns affecting the insurance sector. This comprehensive research, based on 589 responses from 39 territories, presents a vivid picture of the challenges that insurance market practitioners and observers find most urgent with cybercrime at the top of the list as a leading risk.

The Dominance of Cybercrime

Among the numerous risks identified, cybercrime stands out as the unrivaled leader. The report reveals that concerns related to potential data breaches, theft of sensitive data, phishing, and ransomware attacks have taken center stage. This not only mirrors the rise in claims for cyber incidents, but also highlights the vulnerability of insurance companies’ own systems to attacks. In 2023, themes such as the growing sophistication of criminals and government backing further intensified the gravity of the situation.

Sector and Region-Specific Concerns

Breaking down the results by sector provides quite interesting insights. The composite insurance sector identifies cybercrime as its primary concern, reflecting the pervasive fear of digital threats. Life and non-life insurance, as well as reinsurance, place cybercrime in the second position (right after climate change and regulations), acknowledging its significance. Brokers, while recognizing the threat, place cybercrime in the third position.

Geographical disparities also play a role in shaping the cyber risk landscape. For Europe and the Asia Pacific, cybercrime is the top “banana skin,” reflecting the global nature of digital threats. In contrast, for Africa and North America, cybercrime ranks as the second most pressing risk, highlighting regional nuances in the perceived severity of the threat.

A Growing Landscape of Vulnerability and Cyber Risks

The research conducted by PwC and CSFI indicates a rising concern among respondents that phishing and hacking attempts are ever-present. The ease with which criminals can monetize stolen data adds a layer of complexity to the challenge. The consequences of a data breach or a successful cyberattack extend beyond mere financial losses, as the theft of sensitive data, for instance, health insurance-related information, could have far-reaching consequences for both individual firms and the industry at large.

Reasons Why The Insurance Sector Is Targeted

In all honesty, who would be surprised that insurance companies are often attacked? Handling vast amounts of valuable personal identifiable information and sensitive data, these organizations become an attractive target for cybercriminals due to several compelling reasons. Firstly, insurance companies store a wealth of personally identifiable information (PII) and financial data, making them a lucrative source for identity theft and financial fraud. The value of protected health information (PHI) within the healthcare insurance sector is particularly attractive for cybercriminals, as this data brings big profits on the dark net. Additionally, insurance companies hold critical data on assets, liabilities, and financial transactions, making them a prime target for those seeking insider information for financial gain.

Moreover, the interconnected nature of the insurance ecosystem, involving collaborations with various third-party vendors and partners, creates potential entry points for cyber threats. Attackers may exploit vulnerabilities in the supply chain, leveraging less secure partners as gateways to infiltrate the primary insurance company network. As the insurance sector embraces digital transformation and adopts technologies such as cloud computing and IoT devices, the attack surface widens, providing cybercriminals with more avenues for exploitation.

The nature of insurance operations, often involving large transactions and the transfer of significant funds, further increases the attractiveness of insurance companies as targets for cyber attacks.



Cybercriminals recognize the potential for substantial financial gains through ransomware attacks,
more than 40%
of which are carried out through phishing, where they encrypt critical data and demand hefty ransoms for its release.


Fragile Fortifications: The Alarming State of Cybersecurity in the Insurance Business

Unfortunately, despite the fact that insurance companies hand huge amounts of highly sensitive and valuable data, and the representatives consider cybercrime to be one of the most urgent risks, several researches highlight the fragile state of cybersecurity in the insurance industry. According to the Cyber Insurance Risk in 2022 report, nearly 20% of the top 99 insurance carriers have a high susceptibility to ransomware, while 82% of insurance firms are vulnerable to phishing attacks.


The Phishing by Industry Benchmarking 2023 report reveals that, for large organizations (with more than 1,000 employees), the insurance industry remains
the most at-risk
for the second consecutive year, with a phish-prone percentage of 53.2%, showing little improvement from 2022



Additionally, according to the Insurance Banana Skins 2023 report mentioned above, the respondents, when asked to rate their preparedness for cyberattacks on a scale of 1 (poorly) to 5 (well), gave an average response of 3.20. This marks a decrease from 3.22 in 2021, signaling a slight decline in already low confidence in the industry’s ability to address the changing cyber threat landscape. The worry is palpable enough, with a sense that a successful cyberattack could jeopardize business continuity and lead to disastrous reputational consequences.

The Post-ChatGPT Era: A New Wave of Threats

The emergence of ChatGPT in November 2022 has ushered in a new era of challenges for cyber attackers. Historically, markets like Japan experienced fewer claims from phishing attacks due to the complexities fraudsters faced in translating attack emails. However, the deployment of large language models has transformed the cyber attack landscape, enabling the creation of more sophisticated phishing emails, analysis of code to find vulnerabilities and even the generation of malicious code. This shift underscores the need for increased vigilance, consistent measures, and innovative solutions in the face of evolving cyber threats.

To sum up, the insurance industry is at a critical juncture as it battles the ongoing onslaught of cyber threats. The Insurance Banana Skins 2023 report serves as a sharp reminder that cybercrime is not just a technical issue but a multifaceted challenge requiring an integrated approach. As the industry navigates these perilous waters, coordinated efforts towards strengthening cybersecurity, embracing advanced technologies, and developing a culture of resilience are imperative to protect the stability and trust that the insurance sector provides around the world.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About SafeDNS
SafeDNS breathes to make the internet safer for people all over the world with solutions ranging from AI & ML-powered web filtering, cybersecurity to threat intelligence. Moreover, we strive to create the next generation of safer and more affordable web filtering products. Endlessly working to improve our users’ online protection, SafeDNS has also launched an innovative system powered by continuous machine learning and user behavior analytics to detect botnets and malicious websites.

23.12.4 ‘Voyager’ released

Changes compared to 23.12.3

New Features

  • Added the ability for top-level admins to create a new user in any tenant in the Comet Server web interface

Enhancements

  • Improved performance of “Optimizing snapshot” steps during a retention pass for remote Storage Vaults
  • Improved the “Add user” dialog in the Comet Server web interface to allow creating multiple users at once without having to enable advanced options

Bug Fixes

  • Fixed a performance regression introduced in Comet 23.9.10 when using granular restore to restore multiple files from a Disk Image or Hyper-V Protected Item

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About Comet
We are a team of dedicated professionals committed to developing reliable and secure backup solutions for MSP’s, Businesses and IT professionals. With over 10 years of experience in the industry, we understand the importance of having a reliable backup solution in place to protect your valuable data. That’s why we’ve developed a comprehensive suite of backup solutions that are easy to use, scalable and highly secure.

ESET achieves the Champion position in Canalys Global Cybersecurity Leadership Matrix 2023

BRATISLAVA, — January 22, 2024 —  ESET, a global leader in digital security, maintains its Champion status for the fifth consecutive year in the latest Cybersecurity Leadership Matrix from Canalys. With this milestone, it reaffirms its position as a world-renowned vendor of digital security and a top security provider for global partner networks.

According to Canalys, a leading global technology market analyst firm providing an overall assessment of the leading cybersecurity vendors with established channel programs, ESET is “one of a few full-spectrum cybersecurity vendors that cover consumer, SMB, enterprise, and MSP segments, giving it access to extensive threat intelligence.”

“Since beginning this company more than 30 years ago, we have been focusing on helping our partners develop their cybersecurity businesses and working to protect their customers against all types of threats by consistently innovating and reinforcing the protections offered by our multilayered technology. Focused improvement of our offering and being named a Champion for the fifth consecutive time affirm the impact of our efforts. We’re pleased to be rated highly by our partners, recognizing the value they place on the investments we’ve made to our platforms and systems,” said Miroslav Mikuš, President of Global Sales.

ESET’s ability to centrally plan and coordinate its go-to-market strategies and its policy of empowering both partners and country offices to run campaigns and sales executions relevant to local strengths are key contributors to its Champion status. Other key areas that have maintained high ratings among ESET´s partners are the quality of account management and technical support, together with overall ease of doing business.

ESET’s network now consists of more than 10,000 active MSPs and 24,000 active resellers. The MSP segment, with its 30% revenue growth, remains a core part of ESET’s strategy. The company has strengthened its proposition by enabling MSPs to offer Inspect and Inspect Cloud XDR solutions and both the ESET Professional and Security Services portfolios, including health checks and MDR.

“ESET’s consistency of engagement and support, as well as focused partner enablement to run campaigns and execute sales initiatives relevant to local strengths, were key contributors to its success in the channel,” said Matthew Ball, Chief Analyst at Canalys. “Partners highly rated its commitment and ease of doing business, as well as the quality of account management.”

The Canalys Cybersecurity Leadership Matrix assessed 29 cybersecurity vendors on their global channel and market performance over the latest 12-month period. The matrix combines three primary types of inputs: partner feedback from Canalys’ Vendor Benchmark ratings with an independent analysis of each vendor’s momentum in the channel based on their investments, strategy, execution and market performance metrics as the vendor´s growth and market share within the peer groups.

To find out more about the Canalys Leadership Matrix Awards, visit the website here.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About ESET
For 30 years, ESET® has been developing industry-leading IT security software and services for businesses and consumers worldwide. With solutions ranging from endpoint security to encryption and two-factor authentication, ESET’s high-performing, easy-to-use products give individuals and businesses the peace of mind to enjoy the full potential of their technology. ESET unobtrusively protects and monitors 24/7, updating defenses in real time to keep users safe and businesses running without interruption. Evolving threats require an evolving IT security company. Backed by R&D facilities worldwide, ESET became the first IT security company to earn 100 Virus Bulletin VB100 awards, identifying every single “in-the-wild” malware without interruption since 2003.

The Evolution & Outlook of the Chief Information Security Officer

In an increasingly digitized business landscape, the role of the Chief Information Security Officer (CISO) has never been more vital. As threats grow more sophisticated, CISOs are the frontline defense against cyber attacks. This piece will delve into the evolving role and responsibilities of the CISO, the necessity of embracing automation for improved security, and the future outlook for this critical position.

Defining the Role of the Chief Information Security Officer

The Chief Information Security Officer (CISO) stands as the vanguard, safeguarding an organization’s digital fortifications from ever-looming cyber threats. This integral role is tasked with ensuring the triad of confidentiality, integrity, and availability of data within the organization. To accomplish this, CISOs spearhead the development and implementation of comprehensive cybersecurity strategies, while vigilantly enforcing regulatory compliance across all layers of the organization.

Beyond mere implementation, the CISO also carries the mantle of education, nurturing a cybersecurity-conscious environment by making every employee cognizant of potential cyber threats and effective preventive measures. As the digital landscape shifts beneath our feet, the roles and responsibilities of the CISO have significantly evolved, casting a larger shadow over the organization’s operations and extending far beyond the traditional confines of IT risk management.

No longer confined to the realms of technology alone, the CISO has become an integral component of the broader business matrix. They stand at the intersection of business and technology, needing to balance the demands of both spheres in order to effectively steer the organization towards a secure digital future. Boards of directors are increasingly looking to CISOs to guide cybersecurity strategy.

Their increasing visibility and influence within the organization underline the growing importance of this role in an era where data has become one of the most valuable assets. As we delve deeper into the evolving dynamics of the CISO’s role, we realize that their responsibilities have significantly broadened, underscoring the vital importance of this position in the modern, digital-first business landscape.

The Rising Importance of the CISO Role

The increasingly digitalized and interconnected world of today has thrust the role of the Chief Information Security Officer (CISO) into the limelight. Their duties have become crucial as organizations navigate a complex and ever-evolving cybersecurity landscape. Customer data protection, adherence to intricate regulations, and ensuring seamless business operations in the face of potential cyber threats are prime priorities that necessitate the presence of a CISO. It is their expertise and guidance that help secure the fortress of the organization in the cyberspace.

However, their impact goes far beyond maintaining the technical integrity of an organization’s systems. CISOs have an opportunity to articulate value and fill in communication gaps. They are the custodians of a company’s reputation, playing a pivotal role in cultivating customer trust by safeguarding their data. This ability to instill confidence in customers, clients, and partners is a tangible asset in a world where data breaches and cyber threats can swiftly erode faith and undermine business relationships.

As companies continue to digitize operations and embrace innovative technologies, the role of the CISO has transcended the traditional boundaries. Between 2021 and 2025, the percentage of Fortune 500 company board members with cybersecurity experience is predicted to rise from 17 percent to 35 percent. The mandate is no longer limited to security-centric tasks, but now encompasses strategic business decisions and corporate governance. The CISO’s role has transformed from a backstage player to a strategic frontline defender, becoming an essential piece in the organizational jigsaw.

Indeed, the significance of the CISO’s role is underscored by the sheer magnitude of potential consequences a single cyber threat can unleash. Their presence is a testament to an organization’s commitment to digital safety and data protection. In the fast-paced, high-stakes realm of cybersecurity, the CISO stands as a critical bulwark against cyber threats, leading the charge in protecting and securing the digital frontier. Their value in the corporate world continues to rise, reflecting the paramount importance of security in an ever-more connected world.

The Changing Scope and Responsibilities of the CISO

In a dynamic digital era, the role of the Chief Information Security Officer (CISO) has transcended traditional boundaries, making the position increasingly complex yet crucial. The CISO’s sphere of influence has broadened, extending beyond its technological epicenter to reach into strategic decision-making and corporate governance. In fact, in 47% of organizations surveyed, the CISOs are now reporting directly to the CEO.

At the core of the CISO’s responsibilities lies risk management. However, this responsibility has evolved from a narrow focus on IT-related risks to a broader understanding of risks that could impact the organization’s overall business objectives. This includes identifying and mitigating potential vulnerabilities, while continually strengthening the organization’s security posture.

Compliance too falls under the expanding scope of the CISO. With myriad regulations governing data security, privacy, and cybersecurity at large, the CISO must ensure the organization stays within the lines of compliance. This involves not only knowing and understanding these regulations but also implementing and enforcing compliance measures.

Business continuity planning is another domain that has come under the CISO’s purview. As the guardians of the organization’s digital infrastructure, CISOs play a pivotal role in ensuring that the business can swiftly recover and resume operations following a cyber incident. This involves devising strategies that minimize downtime and limit the impact on business operations.

In an era where effective communication is paramount, the modern CISO needs to be an adept communicator. They must be able to articulate complex cybersecurity concepts in a way that resonates with stakeholders and informs decision-making. As a bridge between the technical and business realms, the CISO must translate the implications of cybersecurity risks and strategies into tangible business terms.

As we move further into the digital age, the CISO’s role will only continue to expand, reflecting the increasing integration of digital technologies into all facets of business. This expanding remit underscores the increasingly strategic role the CISO plays in navigating the intricate labyrinth of cybersecurity and steering the organization towards a safe digital horizon. Indeed, the evolving scope and responsibilities of the CISO bear testimony to the complexity and importance of this role in today’s interconnected business landscape.

Embracing Automation for Enhanced Cybersecurity

In an era marked by escalating cybersecurity threats, CISOs are increasingly turning to automation as a formidable ally in their ceaseless vigil. Automation offers a robust solution to monitor digital ecosystems tirelessly, detect inconsistencies, and respond to threats with a swiftness that surpasses human capabilities. This significantly enhances an organization’s overall defense mechanisms, bolstering its ability to counteract potential cyber attacks.

Yet, the benefits of automation extend beyond mere threat detection and response. Automation, by shouldering the burden of routine monitoring and detection, frees up the valuable time of the CISO and their team. This allows them to channel their expertise and energy into strategic planning, proactive threat mitigation, and continual refinement of their cybersecurity strategies. It empowers them to step away from the trenches and take a more holistic, strategic view of the cybersecurity landscape.

However, embracing automation is not merely about deploying advanced tools. It necessitates a thoughtful integration of these technologies into the organization’s broader cybersecurity framework. CISOs must ensure that automation complements their existing processes and systems, augmenting rather than replacing human expertise. Indeed, the effectiveness of automation is maximized when it operates in harmony with the human element, creating a cybersecurity ecosystem that is both technologically advanced and intuitively guided.

As we move forward, automation is set to play an increasingly vital role in cybersecurity. Emerging technologies, such as machine learning and artificial intelligence, are pushing the boundaries of what is possible, offering sophisticated tools that can adapt, learn, and respond to threats in real-time. For CISOs, harnessing the power of these technologies will be pivotal in navigating the cybersecurity challenges of tomorrow. Embracing automation is no longer an option, but a strategic necessity, one that will define the resilience and effectiveness of an organization’s cyber defenses in an era of relentless digital threats.

Adapting to Increasingly Sophisticated Cyber Threats

In the dynamic theater of cybersecurity, threat actors are constantly devising innovative methods of infiltration and disruption. The digital battlefield is far from static; new enemies and tactics surface with alarming regularity, escalating the challenge that CISOs must navigate. 68% of surveyed CISOs feel at risk of a material cyber attack. To stay ahead of these emerging threats, CISOs must perpetually refine their defensive strategies, ensuring their systems are impervious to the latest forms of cyber assault.

Staying updated with the latest threat intelligence is a core component of this adaptive approach. CISOs must be perpetually aware of the evolving threat landscape, closely monitoring emerging trends, understanding new attack methodologies, and identifying potential vulnerabilities within their own defenses.

Integration of cutting-edge cybersecurity technologies is another crucial aspect of this adaptive strategy. With the advancement of technology, novel tools and solutions are continually being developed to counteract sophisticated cyber threats. CISOs must be adept at identifying and deploying these technologies, using them as powerful weapons in their arsenal against cyber adversaries.

In addition to technological innovation, a crucial aspect of the adaptive strategy involves the continuous evolution of an organization’s security measures. These defenses must be aligned with the sophistication and complexity of the threats they’re designed to counteract. This necessitates regular reviews and revisions of cybersecurity policies, implementation of latest best practices, and ongoing education and training of staff to ensure they are aware of the latest threats and preventive measures.

The adaptive strategy is not a singular initiative but a relentless pursuit, a ceaseless game of cat and mouse against invisible adversaries in the digital realm. CISOs must remain vigilant, resilient, and innovative in their approach, relentlessly adapting their strategies to navigate the ever-evolving cyber threat landscape. This fluid approach to cybersecurity, which allows for rapid adjustments in line with the changing threat environment, ensures that organizations remain a step ahead, securing their digital fortress against increasingly sophisticated cyber threats.

The Future Outlook of the CISO Role

In the dawning horizon of our digital future, the Chief Information Security Officer’s role will undoubtedly continue to evolve and adapt. As the dawn of technologies such as Artificial Intelligence (AI) and Machine Learning (ML) breaks onto the cybersecurity landscape, the realm of digital defense is poised for seismic shifts. The trailblazing CISO must be prepared to harness these advancements, leveraging their transformative potential to stay ahead of the cybercriminal fraternity.

Further, as organizations increasingly pivot towards a digital-centric approach, the CISO’s role within the corporate arena is set to become even more central. It will not be enough for these digital sentinels to simply align their objectives with the broader business strategy. Instead, they will need to weave cybersecurity into the very fabric of the organization’s strategic blueprint, making it an integral component of all business operations and decision-making processes. This calls for an ever-closer collaboration with other C-suite executives, fostering a cybersecurity-conscious culture at the highest echelons of the corporate hierarchy.

The future CISO will also need to embrace the mantle of change management, driving the adoption of new technologies and processes within their organization. They must be adept at managing both the technical aspects of these transitions and the human element, guiding their team through the change and fostering a mindset of continuous learning and adaptation.

The road ahead for CISOs is certainly challenging, but it also holds immense potential. For those who can adapt, innovate, and lead amidst this dynamic digital landscape, the future holds untold opportunities. As we stride further into this digitized future, the role of the CISO will only grow in importance and impact, reflecting the vital role they play in safeguarding our digital world. As such, the CISO of tomorrow must be a visionary leader, able to navigate the complexities of an ever-evolving threat landscape and steer their organization towards a secure digital future.

About Version 2 Digital

Version 2 Digital is one of the most dynamic IT companies in Asia. The company distributes a wide range of IT products across various areas including cyber security, cloud, data protection, end points, infrastructures, system monitoring, storage, networking, business productivity and communication products.

Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, different vertical industries, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.

About Portnox
Portnox provides simple-to-deploy, operate and maintain network access control, security and visibility solutions. Portnox software can be deployed on-premises, as a cloud-delivered service, or in hybrid mode. It is agentless and vendor-agnostic, allowing organizations to maximize their existing network and cybersecurity investments. Hundreds of enterprises around the world rely on Portnox for network visibility, cybersecurity policy enforcement and regulatory compliance. The company has been recognized for its innovations by Info Security Products Guide, Cyber Security Excellence Awards, IoT Innovator Awards, Computing Security Awards, Best of Interop ITX and Cyber Defense Magazine. Portnox has offices in the U.S., Europe and Asia. For information visit http://www.portnox.com, and follow us on Twitter and LinkedIn.。

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