5 Hidden Risks in Insurance Systems and how You can Avoid Them
In an era where data breaches make regular headlines, the fear of personal information exposure looms large – not only for big retailers but also in the deeply personal realm of insurance. Beyond the headlines, insurance agencies managing sensitive personal data face concerns about the security of the systems in which that data resides. Here we address the fears tied to the aftermath of such incidents. Rather than dwelling on fear alone, let us explore ways to mitigate these concerns.
Fear: Agency management systems store sensitive client information, and a data breach could expose this data to malicious actors. This fear is reasonable considering the increasing frequency of cyberattacks targeting the insurance sector. In 2021, CNA Financial fell victim to a ransomware attack that resulted in unauthorized access and potential exposure of sensitive customer data. Such incidents underscore the vulnerability of insurance systems to malicious actors
Fact: Modern systems offer robust security infrastructures and implement industry-leading practices. When considering a new system, be sure to compare their offerings against the industry’s best practices. This is one reason Veruna is built natively on the Salesforce platform: our clients can rest assured that the highest level of care is used in data security measures. You can find more information about Salesforce's security practices on their Trust & Compliance Documentation page.
Fear: Legacy agency management solutions lack comprehensive security protocols, exposing insurance agencies to the risk of unauthorized access and cyber threats. Smaller software companies simply can’t keep up with evolving protocols, implying that only the largest of companies can be trusted. Even the Office of the Superintendent of Insurance, New Mexico’s oversight agency, suffered a near-full takedown in 2023. Without stringent security measures, all organizations are susceptible to data breaches or unauthorized alterations of critical information
Fact: Today, agencies of any size can take advantage of big tech. Salesforce employs multi-layered security measures, including two-factor authentication, IP range restrictions, and comprehensive access controls. Learn more about Salesforce's security basics to understand what protocols you need to consider. Veruna is proud to offer the best of both worlds – a platform purpose-built upon insurance experience, along with the full suite of Salesforce security measures.
Fear: Industry regulations are ever-changing, and not keeping pace could lead to severe legal consequences. It’s difficult, especially for agencies with a few hundred employees or less, to keep up with these regulations, while violating them could result in severe penalties and reputational damage. Companies that can’t show compliance will increasingly miss significant business opportunities.
Once again, Veruna AMS, built on Salesforce, adheres to various compliance standards, such as GDPR, HIPAA, and ISO 27001. The Salesforce Compliance page details our commitment to meeting the most stringent global compliance and security standards.
Fear: Users fear having limited control over their data, making it difficult to manage and protect adequately. Many agency management systems restrict control over critical data, making it expensive, time-consuming, or completely prohibitive to manage, protect, and make good use of. Worse, a lack of protection measures could lead to an agency’s demise.
Fact: Granular control over data access and permissions through role-based security is now table stakes. The Salesforce Data Security page describes its commitment to customer trust and explains how organizations can control and protect their data with Salesforce. More importantly, YOU own your data. Veruna is here to help you manage it the best way possible.
Fear: The potential consequences of system failures or natural disasters are growing with legacy systems. Inadequate disaster recovery plans could result in data loss and operational disruptions, neither of which are tolerated by customers, especially in challenging times.
Fact: Important data must be protected, and the time for excuses is over. A modern agency management system must offer a reliable disaster recovery system through multiple data centers, ensuring data availability even in the face of unexpected events. Salesforce offers a fitting example of industry-leading disaster recovery planning, ensuring business continuity for you and those who rely on you.
Leveraging Salesforce provides solace amidst genuine concerns about data security. As a global leader in customer relationship management, Salesforce stands out for its trust and security with its multi-layered approach, robust encryption, and strict adherence to industry standards. Of course, this technology ticks the boxes, but it only works when paired with a purpose-built solution to efficiently drive an agency’s daily business and fuel its growth (that’s where Veruna comes in).
While choosing an Agency Management System is one of the most crucial decisions an agency will make, the real and pressing fears related to data privacy demand tangible safeguards. We must all share the commitment to a future where data security is not just promised but unwaveringly delivered.
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About the author
Jason leads Product Engineering to produce Veruna’s scalable enterprise-ready agency management solution for insurance agencies. He is passionate about creating customer-focused technology platforms, solving difficult problems, and creating business efficiencies using automation, AI, and big data. With over 25 years of experience in Software Engineering, Product Management, and Consulting, Jason is a seasoned technology leader and innovator. Previously, as technology Director at American Family Insurance, he pioneered an Insurance-as-a-Service platform simplifying user experiences for direct-to-consumer, insurance agencies, brokerage partners, and underwriting companies. Jason also has considerable experience delivering SaaS platforms for CRM, Marketing Automation, Business Communications and Customer Experience Management while serving as Sr. Director of Product and Strategy at SAP.