Insurance companies are often the target of cyberattacks. With the transition to fully digital platforms, the volume of sensitive personal and medical data they manage, and their increasing dependence on external partners, they become an attractive target for cybercriminals. In 2024 alone, cyberattacks in the insurance sector increased by over 35%, according to research by international cybersecurity organizations.
Why are cyberattacks on insurance companies increasing?
The answer is simple: data and money. Insurance companies manage a huge amount of sensitive information, such as:
- Medical histories
- Identity and contact information
- Financial and banking data
- Internal business billing and compensation systems
For hackers, this data is valuable. It can be used for extortion, fraud or targeted phishing attacks. Furthermore, due to the regulations that govern the sector, a breach can have extremely high costs in fines and loss of reputation.
See also: How do geopolitical tensions lead to state-sponsored cyberattacks?
Insurance companies and cyberattacks: The main threats
1. Ransomware
Ransomware attacks paralyze a company's systems by encrypting critical data. For insurance companies, the consequences are devastating: delayed claims, loss of customer trust, and potential exposure of sensitive data.
2. Phishing & Social Engineering
Insurance employees are a frequent target of malicious emails impersonating customers or associates. If compromised, hackers gain access to internal systems, invoices or files.
3. Supply Chain Attacks
Insurance companies work with cloud providers, accounting system providers, and healthcare providers. An attack on any of these providers can open a backdoor for attackers.
4. Data Scraping & Identity Theft
Even without a breach, overly lax protection of APIs or portals can allow malicious users to collect data in bulk, which is used in phishing attacks or identity theft.
5. Internal threats
Employees (or former employees) themselves can leak or sell data – either intentionally or due to lack of awareness.
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See also: Judicial sector: Cyberattacks and ways to protect
Cyberattacks on insurance companies: Ways to protect yourself
1. Multi-layered cybersecurity
A combination of technological measures is required , such as firewall, antivirus, intrusion detection systems (IDS), encryption and network microsegmentation .
2. Zero Trust architecture
Access to systems should not be given en masse. Every movement should be verified, regardless of its source. Not all employees should have access to all systems. Especially the most critical systems should be accessible only to specific executives.
3. Staff training
The human element remains the most vulnerable link. Regular training on phishing recognition, password security , and response procedures is essential. Training should be ongoing and practical – with attack simulations and debriefing.
4. Third-party provider control
Insurance companies must regularly assess the security of their partners, sign contracts with data protection clauses and require certifications.
5. Continuous monitoring and response to incidents
Having a Security Operations Center (SOC), which monitors traffic in real time and can react immediately to threats, is now a necessity. Also, having an Incident Response Plan is critical.
6. Regulatory compliance and encryption
Compliance with standards such as GDPR, HIPAA (in health insurance), and DORA (in the EU) is essential to prevent legal consequences.
See also: Government services: Cyberattacks and ways to protect yourself
The cost of negligence
The financial consequences of a cyberattack on an insurance company can be enormous. Even more important is the damage to trust customer – a fundamental element for the insurance industry. Customers who feel unprotected switch providers.
Insurance companies are faced with an ever-evolving adversary. Cyberattacks are not just possible – they are almost certain. Preparation, continued investment in cybersecurity technologies and the involvement of the entire organization are the only way to protect both their business future and the valuable data of millions of policyholders.
