Recent research shows that more insurers are taking advantage of Cloud technology for data storage and managing business functions.
According to a 2018 report from Novarica called Cloud Adoption in Insurance: Trends and Issues, more than 70% of insurers reported using at least some Cloud technology, with about 10% of insurers running most of their infrastructure on the Cloud.
When something is in the Cloud, it means it’s stored on internet servers instead of a computer’s hard drive. The Cloud acts in part as a data center using software as a service, or SaaS, programs not only for data storage but also to host applications that streamline and run business functions.
However, tech innovation doesn’t come without challenges. As the COVID-19 pandemic has pushed many insurers to accelerate their efforts toward digital transformation and Cloud migration, protecting sensitive data stored in the Cloud has been a growing concern.
In episode two of the Insuring Cyber Podcast, Ron Bennatan, chief technology officer of the database security platform jSonar, based in Boston, discusses why insurers should take advantage of the Cloud and where the real risk from Cloud migration lies.
“Most of the risk lies in human error,” he says. “A lot of us in the security industry talk a lot about attacks and breaches, etcetera, but most bad things happen because of mistakes. And mistakes happen more when there’s something new.”
Later in this episode, Jacey Kaps, partner at RumbergerKirk in Miami, discusses how data privacy concerns among insurers, regarding not only Cloud adoption but also increased use of technology overall, are changing the cyber insurance litigation landscape. He also explains how COVID-19 has amplified the need to protect sensitive data with many employees working from home and offers his tips on how insurers can keep their data safe.
“Human error is at the top of the list,” he says. “These attacks, the vectors that are used to engage in them, nothing has really changed here. But what has changed here is a rapid deployment for some organizations of a remote workforce, and with that, the necessity to engage in training to thwart these types of attacks. That is one very important piece that just cannot be ignored – the need to continue to train.”
Tune in to see what else Ron and Jacey have to say and be sure to check back twice a month for new episodes every other Wednesday published along with the Insuring Cyber newsletter. Thanks for listening.
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