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Cyber Criminals Create Big Business for Insurance

As more of our world becomes more dependent on technology and more interconnected on the web, we continue to see an increase in cyber criminals. And, why not? When we were just using the intranet for internal corporate communications there were very few secrets worth stealing. Now we bank online, shop online, apply for loans and car insurance online. All of our personal information is being transmitted daily across the web. Criminals love this!

Cybercrime is growing at an exponential rate and insurance companies are on the receiving end and the rewarded end.

Insurance companies maintain a vast amount of personal information on their clients, including social security numbers, addresses, and often credit card information. They may also have medical records and information on dependents. This means a criminal can steal your entire personal history, medical history, family history, and financial information. They can use this to “wipe out” your bank accounts or create a new life as you, stealing your identity. They can also make money selling your identity to others. Therefore, insurance companies are on the receiving end of many cybercrimes.

However, insurance companies can also be rewarded as cybercrime increases. How? Whenever there is a risk there is a reason to insure against that risk. Insurance companies are creating a new industry from insuring against the risk of a cybercrime happening to large businesses. As cybercrime continues to grow ALL businesses are at risk because ALL businesses hold information and have a duty to keep client information and records confidential.

In October 2015 NPR was quoted as saying cybercrimes cost the global economy nearly a half a trillion dollars a year. This continues to increase every year. Allianz and other insurers have jumped on the bandwagon to provide insurance against cybercrimes. Because this is a growing industry, there are a growing number of job postings to enter this career. If you are looking to reinvent yourself and begin a new career, cybercrime insurance could be a path for you.

Only 1 in 5 businesses are insured against cybercrime. As a new industry, many business owners don’t understand it or their chance of risk to be on the receiving end of a cybercrime. But, it can wipe you out financially overnight as a small business owner. As we become increasingly more reliant on transmitting information electronically, the cybercrime industry will continue to grow. Want to know more, contact us.

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