An insurance document management system can answer many of agents most pressing questions, like what security controls can insurance agents and their agencies use to ensure data is not compromised, especially on tablets and mobile phones?
Well, the question is as complicated as the answer, unfortunately.
Although the insurance industry has not been subjected to the scrutiny other industries have endured regarding data security, it’s late to the data security party, and that’s just as bad for agents and their companies.
Although the healthcare industry accounts for 43 percent of all data breaches in the past several years, the insurance industry could be a new target for data breach given the lack of security controls most insurance companies have in place, especially when it comes to use of tablets and mobile phones.
The Irony of Data Breach in the Insurance Sector
The insurance industry is designed to protect consumers and businesses from financial loss. The irony of its purpose resides in how susceptible the industry has been to financial loss of its own, and a lack of data security measures are to blame.
Although most large insurance companies have actuaries to stave off financial losses on policies granted to customers, they do very little to analyze the costs incurred from the impact of a data breach.
Many insurance companies provide identity theft insurance, yet fail to safeguard their own organizations against similar attacks. The 2016 IBM-sponsored Ponemon Institute study on the costs of data breach revealed that the typical data breach costs an organization 7 million US dollars.
Additionally, consumers of insurance solutions are more sensitive to these occurrences, as regulatory initiatives mandate companies divulge all necessary information to customers and clients in the event of a data breach.
Finally, the report states that financial services companies (which include insurance as a subsector), have among the highest industry costs to suffer in the event a data breach occurs.
That’s not something any actuary wants to see at their desk Monday morning.
Given that most businesses don’t have that kind of money to throw around, data breach is a serious, serious issue for both consumers in search of insurance companies they can trust and insurance companies themselves.
The good news is insurance companies can adopt technologies, not insurance premiums, that stave off the risk of data breach in the form of an insurance document management system.
An Example of Why an Insurance Document Management System is Indispensable
In January this year, the Delaware Department of Insurance investigated a data breach of Summit Reassurance Services, including BCS Financial.
Each of these companies have subcontractor status with BlueCross BlueShield of Delaware, an organization not far removed from the Anthem breach that affected hundreds of thousands of American citizens.
Ascribing Insurance Cyber Security Protocols to the Cloud, Tablet and Mobile Phone
The Bring Your Own Device (BYOD) phenomenon creates data security worries, too. However, an insurance document management system ensures security controls are in place in device agnostic environments, mitigating potential effects of BYOD.
Although insurance companies are yet to take this strategic angle, many technology companies have striven to lower administrative costs by letting workers bring their own laptops to work. This and the use of mobile devices to complete work tasks culminate in the BYOD phenomenon.
Although this reduces IT costs, it can cause long-term data breach costs without an insurance document management system in place to preclude the security downfalls of this framework.
Since private businesses have no control over how workers use their own devices, workers who bring their own devices to the office have few incentives to secure company information on the devices they bring home in the evenings.
As different devices proliferate and use of business technologies leads to IT consumerization, the power of network security administrators in the insurance industry lessens, and demands that agents have cloud-based insurance document management system that will enable them to secure the insurance company’s information on an array of devices, including but not limited to Android and iOS (mobile app document management in the cloud), and Mac devices (cloud-based document management).
Using Insurance Document Management to Harness Big Data Across Devices
In the insurance industry, big data is a fancy term for big documentation. Given that actuaries are constantly grappling with big data, documents are always going to be important for insurance professionals.
Both independent and captive insurance agents can benefit from document management solutions because they meld accessibility and security, which, historically, have been viewed as mutually exclusive facets of information technology.
With the two-factor authentication log ins and cloud based SSL and 256-bit bank grade encryption standard (AES), device location is irrelevant as the data is housed in SSAE 16 Certified Data Centers in remote locations not disclosed to unauthorized parties.
Understanding Insurance Sales Enablement and E-Commerce
This all begs the question of how insurance agents must handle the sales process from a compliance standpoint. With the full-fledged enablement of the internet, e-commerce trade has skyrocketed and produced an enormously profitable backdrop for businesses of all kinds, insurance companies included. The catch is figuring out how to handle the red tape that can sometimes be involved with taking advantage of new mediums.
Despite the profitability an insurance document management system can bring to agents, it’s important to examine how the increase in volume in the sales cycle can reduce attention devoted to compliance matters.
How Insurance Document Management System Features Can Help
When it comes to the process of signing documents, the sales cycle in the insurance industry is particularly susceptible to newfound changes. Although digital signatures and electronic signatures provide a means of simplifying the transactional process for insurance sales agents, these processes have been amended to ensure compliance.
For instance, the National Association of Insurance Commissioners (NAIC) notes that there will be numerous challenges in selling insurance over the internet, including the signature component. With an insurance document management system, the authentication components and document management extension, particularly when coupled with templating technology, can expedite the sales process for both independent and captive insurance agents.
The more quickly a sales process is completed, the sooner the hunting process can begin once more, and that’s what a full document management solution provides.