Executive Summary

Cyberattacks Are On The Rise

As cybercriminals become smarter and their methods more difficult to detect, insurers must take cybersecurity more seriously than ever before. Cybercriminals not only have the potential to draw on technologies such as artificial intelligence (AI) in their attacks but also the ability to target vulnerable and naïve users as an entry point. Insurance has seen a shift towards digitalization in the past few years, which has only increased the surface area for cyberattacks.

COVID-19 has hastened the need for better cybersecurity as insurers were forced to offer more digital access for customers confined to their homes for large chunks of 2020.

Cybersecurity spend in the insurance industry is set to grow Insurers should be aware of the security threats they face and the profound implications a breach could have on their reputation. These firms hold some of the most sensitive personal data available on their customers, and losing it will result in hefty regulatory fines and further reductions in customer confidence, which is already low.

GlobalData estimates that global security revenues in the insurance sector will reach $6.4bn in 2024, up from $5bn in 2019, growing at a CAGR of 4.8% over the period.

In addition to spending on security software and services, the human element must be considered. Vulnerabilities may still be exposed due to deviations from policy and protocol. Proper training is, therefore, necessary to ensure a risk-aware mindset in both employees and customers.

Leaders Leading Cybersecurity Vendors

Leaders: IBM, Check Point, Palo Alto Networks, Amazon, Google, Microsoft, BAE Systems, CrowdStrike, Forcepoint, Fortinet, Sophos, Idemia, Thales, Accenture, Lexis-Nexis.

Leading cybersecurity vendors in the insurance sector Leaders: CyberCube, Darktrace, BlackBerry, One Identity, CyberArk, Thales.

Leading adopters of cybersecurity in the insurance sector Leaders: Munich Re, Aegon, AIG, The Hartford, Aetna, Transamerica, Ping An.

Laggards Insurance firms that fail to implement strong cybersecurity strategies supported by security services and infrastructure as their platforms digitize.