Chapter 6 Flashcards
What are risk exposures for insurance companies?
-Cyber attacks may result in system unavailability, data corruption, or disclosure of confidential personal identification information
-Denial of service attacks could compromise operations and disrupt communications with brokers, agents, and consumers
-Exposures arise from cloud, web, and mobile application
What are the risks associated with a brokerage?
-Insurance intermarries collect large quantities of sensitive information and are the primary point of contact when dealing with the public
-a data breach is the biggest risk exposure for an independent brokerage
What are the risk exposures for loss adjusters?
-Cyber risk exposures of staff adjusters, independent adjusters, and public adjusters can differ
-If independent or public adjusters are sole proprietors they will have cyber risk exposures comparable to sole proprietors across business sectors
-Small to medium size independent/public adjuster firms are targeted by hackers who perceived their cyber security as less robust than larger firms
-Cyber security incident at independent firm can move up to have implications for insurer that the firm is working with
Explains supply chains
-The sequences of processes involved in producing and distributing commodities and manufactured goods
-Any firm that is part of the insurer supply chain may be a target for cyber criminals
What are the possible consequences of cyber attacks on insurance firms?
Reputational damages-after a breach or cyber attack people lose trust in the business and seek to reduce their exposure
Fines -failing to ensure adequate protection for client data can result in fines
Legal expenses-insures named in a class action law suit incur legal fees due to engaging legal counsel to defend against the class action and representing the insurer in court
Lost of critical business systems and data-losing these systems can result in businesses going bankrupt and closing
