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10 security measures your insurtech partner should have to ensure data protection

Time to read
4 minutes
Last updated
June 28, 2024
In a nutshell
  • A lack of security measures can lead to devastating consequences for both businesses and customers, ranging from data breaches and financial loss to reputational damage and even higher insurance premiums.
  • With cyberattacks at an all-time high and the highly sensitive nature of insurance data, it’s crucial to work with an insurtech that prioritises security and compliance.
  • Robust security measures include encrypting data, strict access controls, ISO certification and more.

In an era where cyber attacks are at an all-time high and the financial impact of breaches can be devastating, it’s more important than ever to work with partners who take data security and compliance seriously.

This is especially true when it comes to insurance data, which can be highly sensitive.

And if you’re working with an insurance company or insurtech without robust security, it can lead to devastating consequences for both your business and your customers: data breaches, financial loss, regulatory penalties, reputational damage, potential lawsuits and higher insurance premiums. 

Whether it's safeguarding sensitive data, fortifying access controls or fostering a culture of security awareness, every measure that an organisation takes can tell you a lot about their dedication to preserving confidentiality and integrity – and ultimately whether they’re a partner you can trust.

Here are 10 things to look for to make sure your insurtech partner has robust security measures in place.

10 insurtech security measures for data protection
With cyberattacks at an all-time high and the highly sensitive nature of insurance data, it’s crucial to work with an insurtech that prioritises security and compliance.

1. Protecting insurance data through encryption

Since insurtechs have access to sensitive user data such as personal identification information, financial information and biometric data, protecting it is crucial.

One way to do this is by employing state-of-the-art encryption protocols to render data unreadable to unauthorised parties.This ensures that even in the event of a breach, the integrity and confidentiality of your company’s information and that of your users remains intact.

2. Maintaining confidentiality through strict access controls

Access to sensitive systems and information should be tightly regulated through rigorous access controls.Insurtechs should have granular permissions and authentication mechanisms in place so that only authorised people can access pertinent data – whether it’s personal information about customers, their financial data or claims and policy details.

This minimises the risk of unauthorised access and preserves the confidentiality of valuable business assets, such as your intellectual property and financial stability, and by extension your brand reputation and trust. 

data security at Qover
Data should be encrypted and only accessible to authorised people.

3. Securing cloud infrastructure 

As most insurtechs rely on cloud infrastructure, they should leverage the latest cloud security protocols to ensure that data remains safeguarded against evolving cyber threats.

Look for high standards of cloud security like robust encryption, intrusion detection and continuous monitoring.

4. Classifying insurance data carefully

Not all data is created equal. Through meticulous data classification, insurtechs should categorise information based on its sensitivity and implement tailored security controls accordingly.

That way, they can allocate resources judiciously, maximise protection where it's needed most and ultimately preserve the integrity of your data ecosystem.

ISO 27001 certification Qover
Being ISO 27001 certified means that a company adheres to best practices in information security management and has an ongoing commitment to security and quality.

5. Being ISO-certified and GDPR-compliant in the insurance industry

Check whether your potential insurtech partner is ISO-certified, which means they meet internationally recognised security standards. There are different types of certifications, but the ISO 27001:2022 in particular means they adhere to best practices in information security management, which includes safeguarding data through stringent protocols and rigorous compliance measures.

Achieving ISO certification is time-intensive and demanding, and involves detailed audits, continuous improvement processes and strict adherence to comprehensive security policies. It also supports compliance with regulations like the European Union’s General Data Protection Regulation (GDPR), which enhances data protection and privacy.

It’s also not a one-time effort; organisations must continuously work to maintain and update their practices in order to get the latest certifications.If an insurtech adheres to ISO standards, it means they have an ongoing commitment to security and quality.

6. Ensuring platform security

It’s essential for insurtechs to protect their core platform and applications from threats, which could involve secure coding standards, thorough input validation and robust data encryption. They should also have strong authentication and role-based access control.

After all, the platform – like Qover’s embedded insurance orchestration platform, for example – is how they’re delivering their core services to you, the business partner.

So it’s important to ask if they conduct regular security testing. Bonus points if they use automated tools to address vulnerabilities quickly.

Additionally, insurtechs – or any tech company for that matter – should have ongoing security training for developers so they can stay updated on the latest threats and secure coding practices.

7. Continuous monitoring and threat detection 

An insurtech’s security team should regularly track network traffic on company devices, analyse logs and use machine learning to detect anomalies. Having solid intrusion detection and prevention systems can help detect and block threats on any device.

To guarantee the strongest network security, insurtechs should have firewalls and antivirus software in place as well as use VPNs for secure remote access and network segmentation to isolate sensitive zones.If something does happen, it’s important to have an incident response plan and conduct regular drills so employees know what to do in the event of a breach or cyberattack.

Insurtechs need to constantly reevaluate and improve their security controls to anticipate emerging threats.

8. Incorporating AI and staying on top of the latest security innovations

Like getting an ISO certification, security is not one and done.

Hackers and phishers are constantly coming up with creative new ways to break through, so you’ve got to stay ahead of the curve.Insurtechs should constantly reevaluate and improve their security controls based on the latest innovations to anticipate and mitigate emerging threats.

This includes leveraging AI-driven security solutions that can detect and respond to threats in real-time, using machine learning to identify patterns and anomalies, and integrating advanced encryption techniques to protect data. By embracing these cutting-edge technologies, insurtechs can better safeguard sensitive information.

9. Providing company-wide security awareness training

While your insurtech partner should have a dedicated security person or team, it’s also a collective, company-wide responsibility.Without proper security training, employees might fall for phishing attacks, leading to data breaches and malware infections. This can compromise sensitive information, causing financial loss and reputational damage.

That’s why it’s crucial to equip all staff members with the right tools and knowledge when it comes to preserving data integrity.In order to cultivate a culture of vigilance and mindfulness, insurtechs should provide comprehensive security awareness training to empower employees to identify and mitigate security threats effectively.

10. Shielding physical assets

While digital threats often dominate headlines, physical security remains a crucial component of a holistic security strategy.

Whether your insurtech has a main headquarter or multiple offices, they should implement stringent physical security measures to safeguard their facilities and infrastructure against unauthorised access, theft and tampering as an additional layer of protection.

Security measures are more than a business feature – they’re a cornerstone of insurtech operations

Security is not merely a business feature; it's a commitment to safeguarding trust, preserving integrity and becoming more resilient in the face of growing digital threats.

From encryption and access controls to security awareness training and ISO certification, insurtechs need to take the necessary steps to protect the assets of their business partners and end users.

To learn more about Qover’s commitment to security, check out our trust centre.