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Life Insurance Producers: Protect Your Clients From Cyber Attacks

It shouldn’t come as a surprise.

Cyber crimes are becoming more common. And it’s not just giant corporations that are vulnerable to attack. Don’t make the mistake of thinking that just because your business may be small that it’s not in danger.

Life insurance producers like you need to know how to protect your clients’ sensitive information. 

But you also need to make sure your prospects and clients know that cybersecurity is on your radar and you’re actively working to prevent a breach.

One of the challenges of staying on top of cybersecurity is that it’s both complicated and constantly changing.

One thing is certain – it’s an issue that you need to be aware of.

Here’s what you need to know.

Lessons In Cybersecurity for Life Insurance Producers

Small Businesses Aren’t Exempt From Risks  

You may think that your life insurance business is “small enough” to avoid the negative attention of a cyber-attacker.

Unfortunately, no one is safe.

In fact, it has been predicted that there will be a *ransomware attack on a business as often as every 11 seconds by the time we get to the end of 2021. 

*Sidenote: Proofpoint defines “ransomware” as, “a type of malicious software (malware) that threatens to publish or blocks access to data or a computer system, usually by encrypting it, until the victim pays a ransom fee to the attacker.”

The fact is, you may be an easy target. Your life insurance business and others like it may not have the manpower, IT setup, or budget to protect against cyberattacks.

Cyberattacks Are Expensive

If your life insurance business is hit with an attack, you may experience a disruption in your normal processes. 

That includes life insurance applications. Putting an added kink in an often complicated process is not the kind of service you want to provide to your prospective clients.

But the possibility of losing a client isn’t the only hit you could take. You could also receive fines, liability problems, and you’ll risk a tarnished reputation.

Fines aren’t ideal and liability issues can be dealt with, but losing your good reputation is harder to come back from.

All in, a cyberattack could cost you tens of thousands of dollars and the hard-earned trust your clients have in you as their life insurance producer.

Tips For Prevention

We wouldn’t throw all this information at you and then not give you some help in preventing a cyberattack.

The following list is from the Federal Communications Commission. (You can see a detailed explanation of each tip here.)

  1. Train employees in security principles.
  2. Use the right security software.
  3. Provide firewall security for your internet connection.
  4. Create a mobile device action plan.
  5. Make backup copies of important business data and information.
  6. Control physical access to your computers and create user accounts for each employee.
  7. Secure your wi-fi networks.
  8. Employ best practices on payment cards.
  9. Limit employee access to data and information, limit authority to install software.
  10. Passwords and authentication should be changed regularly.

Keep Your Clients Safe, Life Insurance Producers

You have a lot of responsibility to your prospects and clients.

Not only do you have to work together to find the best life insurance product for their unique needs, but you also have to protect their sensitive information from the unsavory characters out there who would like to get their digital hands on it.

They trust that you have their best interests at heart and that you’ve got the solutions they need.

When it comes to securing their information, they need to know their life insurance producer fully prepared to keep their data safe.

Otherwise, you’ll face financial repercussions, not only due to fines but possibly in lost clients – now and in the future.

Don’t let your clients or your reputation be a victim of a cyber attack.

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