Preparing for the inevitable data breach
Consumers are looking for ways to reduce their online risk. Your insurance organization is one they'd likely turn to.
It seems as though major data breaches are occurring with increasing regularity — every few months, like clockwork.
But the frequency of the attacks isn’t the only issue. As the recent Capital One breach shows, the acquisition of personally identifiable information (PII) by hackers is incredibly damaging for consumers as both sensitive financial information and Social Security numbers are exposed.
It’s important that insurance providers communicate to their customers that becoming a breach victim is no longer a matter of if but a matter of when.
Safeguarding personal information
While one might assume the regular occurrence of large data breaches would empower customers to be more proactive about securing their PII, the 2019 Global Cyber Barometer from Generali Global Assistance showed that 44% of global respondents stated they don’t feel like they have control over what information people can access about them online. To compound matters, a similar amount (45%) stated they wouldn’t know what to do if their personal information was compromised.
This uncertainty has resulted in high levels of worry: 57% of U.S. respondents indicated that they were worried about becoming a victim of identity theft. To put that into perspective, the survey revealed that consumers consider identity theft more worrisome than getting in a serious car accident.
Based on these statistics, insurers must recognize that protecting their customers’ identity is just as important as protecting their property.
Consumer apathy grows
Cyber incidents like the recent Capital One breach are no longer alarming consumers. Rather, consumers have reached a state of apathy, causing them to forgo many basic identity theft protection measures.
For instance, only a quarter of all respondents to the 2019 Cyber Barometer indicated that they regularly update their passwords and digital credentials, one of the most basic cybersecurity protocols. As an industry that exists to protect against the unforeseen, it would be prudent for insurance providers to consider protecting their customers’ PII. For instance, many breaches are not made public up to several months after they occur, so having monitoring services active before a breach is critical.
Several of the recent breaches making headlines have released victims’ Social Security numbers, meaning their risk of identity theft will remain elevated for life. While the free resolution services are a necessary consolation for victims, it’s important to remember that identity thieves know that your identity is still ripe for use, particularly after those complimentary protection services expire.
The opportunity for insurers
With the increasingly large number of people impacted by these breaches, it’s only a matter of time before identity protection services are as essential as the services used to protect one’s home or car.
With breaches impacting banks, hospitals, credit unions, and recently, even movie pass providers, the average person is running out of places they can trust to keep their information safe. This is why we always encourage customers to be proactive in rethinking both how and where they share their personal information. While rewards programs may be tempting, it’s important to consider one’s increased vulnerability to identity theft by providing another access point to valuable PII.
The good news is that it seems consumers are looking for ways to reduce this risk — and your organization is one they’d likely turn to.
In another survey we conducted, 46% of respondents indicated they would want to purchase identity protection services from their insurance provider. That said, it makes sense for insurers to consider their customers’ identity as another asset worthy of their protection.
Providing protection to the most valuable assets we own like our homes and cars is certainly important, should we get into an accident or have a tree fall on our home during a storm. As such, should we not consider that same “what if” protection for the valuable personal information that helps us secure those assets? While one may easily replace or refurbish physical property with insurance, the impacts of identity theft can occur throughout a lifetime and in some cases, even after the passing of targeted victims. By protecting customers’ identities, insurance providers can give customers peace of mind and protect an asset that simply can’t be replaced.
Paige Schaffer (Paige.Schaffer@gga-usa.com) is CEO of the Identity and Digital Protection Services Global Unit for Generali Global Assistance. Ms. Schaffer leads sales & marketing strategy and revenue growth initiatives, managing operations as well as global expansion. Schaffer began her tenure with Generali Global Assistance in 2007 and led North America Operations for both the emergent Travel Assistance business and the Medical Claims division, working with insurers, medical providers, and government contractors. Ms. Schaffer is a thought leader on identity theft protection, resolution, and victimization.
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