In the past decade, we have all become susceptible to cyber attacks. Both the business sector and the private sector are exposed due to their connection to the internet. Therefore, the field of cybersecurity is perhaps the most dynamic and profitable area today. Every organization requires a quality information security system to prevent cyber attacks such as data theft or system breaches that lead to chaos. Large organizations that hold vast amounts of data, whether internally or related to customers and external parties, face tangible risks. The insurance sector, too, is sensitive and exposed. Small insurance agencies, in particular, are vulnerable to cyber attacks. It’s important for every insurance agent to understand what actions they can take in this regard and whether there are laws requiring them to do so.
The insurance sector falls under regulation when it comes to protecting computer systems from cyber attacks. This is an additional amendment to the Privacy Protection Law and its purpose is to significantly reduce the likelihood of cyber attacks. As a result of such attacks, critical and sensitive information may be stolen from insurance agents’ computer systems, such as identity documents and personal financial information. The regulator has published precise guidelines on how to secure the data stored on the agents’ computers. Cybersecurity is not just a recommendation; it is a mandatory guideline in a world where malicious entities constantly attempt to breach information and databases. Regulation requires every agency to adapt, taking into account its risk level and the scale of its activities. This involves implementing a protective framework that includes various aspects tailored to the organization’s nature and needs.
Regulation is crucial for insurance agents of all sizes, enabling them to establish a significant layer of protection over sensitive information belonging to agency clients.
Regulation Requirements for Insurance Agents and Property & Casualty Companies
The following are information security regulations for insurance agents as they appear in the regulatory guidelines:
The Privacy Protection Law mandates all organizations holding customer data to secure personal information using advanced systems. Every insurance agent must use protective measures; non-compliance is a legal breach even without a cyber attack. Client data protection is crucial.
Penalties: Companies not meeting regulations and suffering from cyber attacks face double impact – damage from attacks and fines for non-compliance. For example, in 2021, insurer Shirbit was fined 11 million shekels for lacking cyber risk management mechanisms.
– Keep defense software updated.
– Use strong, regularly changed passwords.
– Train employees in secure work methods.
– Back up databases regularly.
– Implement customizable firewalls and protection systems.