Revealed – a significant technique for rising insurance coverage companies

Integrating new knowledge and applied sciences by way of mergers and acquisitions (M&A) and shopper engagements brings each alternatives and dangers to rising insurance coverage companies.

However whereas brokers excel in managing shopper threat, they could overlook their inside vulnerabilities. To maintain efficient development and shield their expansive operations, insurance coverage companies should implement a complete knowledge technique.

“A whole knowledge technique is especially vital for an company like ours primarily due to our speedy development,” mentioned Henry Mahler (pictured left), vice chairman and chief info at Oakbridge Insurance coverage, a high 100 impartial insurance coverage company.

“Our knowledge set has grown considerably by way of M&A exercise and natural development, and now we have a singular alternative to leverage our knowledge as a strategic asset. This not solely will increase operational efficiencies but additionally helps determine tendencies and areas of development.”

What sort of ‘tradition’ ought to insurance coverage companies construct?

Oakbridge was fashioned in 2020 from the merger of 4 legacy companies in Georgia. This consolidation was geared toward making a premier insurance coverage company within the US Southeast and past. The corporate’s development technique has included each acquisitions and natural enlargement.

As companies develop quickly by way of acquisitions, a unified knowledge technique and cybersecurity framework ensures that every one components of the group adhere to the identical knowledge requirements and scale back the danger of breaches.

Nevertheless, the complexity of integrating diverse knowledge sources calls for meticulous planning and execution to make sure seamless and safe transitions.

In keeping with Mahler, one space that Oakbridge has labored exhausting to develop is an general “cybersecurity tradition”. This contains common communication with staff on new ways and pitfalls that cyber risk actors deploy, in addition to establishing a sturdy safety consciousness platform.

“The cybersecurity panorama adjustments consistently, and now we have fashioned partnerships with industry-leading cybersecurity corporations,” mentioned Mahler.

“The ‘blocking and tackling’ of a cybersecurity program (ongoing Danger Assessments, Entry Controls, MFA, audits, and so forth.) together with a robust inside cybersecurity tradition has helped tremendously reduce down on insider threat.”

Mahler additionally highlighted the significance of integrating IT, HR, and accounting capabilities effectively to make sure consistency and standardization throughout the group.

Coping with legacy techniques and merging knowledge safely

John Candy (pictured proper), director of IT operations at Oakbridge Insurance coverage, additionally spoke to Insurance coverage Enterprise about some widespread pitfalls that companies would possibly fall into and the steps they’ll take to strengthen their cybersecurity.

“Once we speak about knowledge, you even have to consider safety,” Candy mentioned. On the similar time, safety isn’t the only real concern; knowledge should even be accessible and usable. Merging knowledge from acquired companies into Oakbridge’s techniques is not any small feat.

“It’s at all times a problem whenever you’re migrating knowledge from a 3rd occasion to get the data you want to have the ability to transfer that knowledge,” Candy identified. “You might need an company that has their very own knowledge nonetheless on their legacy system and loses sight of that.”

The complexity of knowledge migration can result in vital vulnerabilities for insurance coverage companies. One main threat is dropping observe of knowledge through the transition. Such oversights can go away knowledge weak, inaccessible to the central group, and improperly managed. Making certain that solely the required personnel have entry to delicate knowledge is one other problem, he added.

Lastly, for smaller independent agencies that won’t have devoted cybersecurity specialists, Candy gave some pragmatic recommendation: “Guarantee that your know-how supplier is conscious of your considerations, and that you just ensure that to allow them to know the way vital it’s that their knowledge is safe.”

He emphasised the significance of leaning on third-party know-how suppliers for help whereas sustaining sturdy inside insurance policies like multi-factor authentication (MFA) and restricted knowledge sharing.

What are your ideas on creating a sturdy knowledge and cybersecurity technique for insurance coverage companies? Please share your perspective within the feedback.