Technological Innovations Are Transforming Almost All Industry

Insurance is an arrangement by which a company gives customers financial protection against loss or harm such as theft and illness in return for premium payments. One of the most important ways that external economic factors are affecting insurance industries is by experiencing a slow pattern in the economy. Insurance companies are affected by lower sales and lower rates of returns on their investments. Companies have to sell certain products for which they have the commitment and the

Mason Financial LLC is a large company that is built on handling of personal data. As the company performs its operations on a network and over the Internet, it is exposed to a plethora of information security risks. Insurance and financial records are a prime target of hackers the world over. As the company stocks volumes and volumes of such personal information, it paves way for hackers and other fraudsters to commit insurance scams. Digital information makes it easier to monetize operations and it is always hard to track. There is the need for all stakeholders handling such sensitive personal information assets to be aware of security implications, monitor their personal credit cards and banking information besides consumers remaining

As previously stated, cybercrime is a market with exponential growth. Cyber attack written premium growth is expected to rise from $1 billion in 2015 to $5 billion in 2018. Scalable cyber insurance is important, as smaller business will likely increase as their vulnerabilities become more apparent to cyber hackers. However, coverage for the cybercrime market is in its early stages, making underwriting difficult as there is little data to base prices on. Through October 4, 2016, 725 data breaches have occurred, affecting more than 29 million records. Medical and healthcare breaches account for 37% of the breaches and 48% of the records affected. Travelers is positioned well to leverage opportunities during the demand surge of cyber protection among businesses. External cybersecurity risks will be the main driver of the cyber insurance market. External hackers breaking into company databases, adding ransomware and leaking private

Insurers should take note of the Cybersecurity Bill of Rights and understand what rights it gives to consumers. Insurers must take reasonable steps to protect their clients’ personal data and ensure it is safely stored. A data breach can be devastating to an insurance company. In the unfortunate event a breach does occur, insurers should have a plan in place to promptly address the breach and provide the required notices to its insureds to protect further

Advanced technology has infringed on the consumers’ privacy because of companies’ negligence. Why are companies breaking silence on being hacked (Perlroth, 2013)? And if there is advanced technology to protect consumers, why are companies not implementing it? There should be more regulations to increase consumers’ protection. Companies’ negligence should not be excused because there is advanced technology that can protect their client’s information; their negligence allowed convenient access to hackers, so they should be punished. The Fortune 500 Companies are being hacked, and hackers have stolen consumers’ information but most companies do not notify the public because they are interested in protecting their image rather than their customers’ information.

An issue is described as a matter that is in dispute where unique perspectives are held in regards to what should be done (Sexty, 2017). One of the main issues that still plagues TD is data security and privacy. As a financial institution that heavily depends on telecommunication, the impact of a data breach could potentially be catastrophic. Examples of a negative impact include unintentional releases of confidential information or financial loss all deteriorate the public trust and sustainability of the bank (Corporate Responsibility, n.d.). However, it is evident that disaster can strike at any time. No matter how much security is implemented, a hacker just needs to find one way through and that is exactly what happened to a credit company called Equifax. Hackers were able to “break an Equifax online tool and access personal data of more than 143 million customers” (Wattles and Larson, 2017).

The nation’s second-biggest wellbeing insurance agency have encountered real security rupture in which that programmers have stolen individuals ' Social Security numbers, names, birthdays, medicinal IDs, and more delicate individual data in a monstrous information break. The rupture influences an expected 80 million clients and workers. Right now, Anthem does not accept the programmers got to credit card or medicinal information.

Cybercrime has become a fast growing concern for the 21st century as businesses, institutions and individuals grow into an interconnected web of computer networks. Online business transactions, along with the sharing of personal information, are vulnerable to a host of disasters that can reap economic and social havoc. Some sources say that today, cybercrime costs more than $1.0 trillion to society--Global Industry Analysts, Inc. forecasted the world cyber security market to reach $80 billion by 2017 (Gale, 2011).

The potential of violations can come from numerous sources (Lawrence & Weber, 2011) (Consumer Information). Recently Equifax had a data breach of their customer’s personal information. The hackers accessed the names, social security numbers, birthdates, and addresses of 142 million American consumers (Consumer Information). This is frightening and happens more often that we think. According to PricewaterhouseCoopers executive, ”Cybercrime has emerged as a formidable threat. Over the years millions have fallen victim to theses attacks. In a survey of 583 U.S. companies, 90 percent said that hackers breached their company’s computers over the last twelve months (Lawrence & Weber, 2011). Cyber crimes occur when hackers attempt to damage or destroy a computer network or system of company’s data. Criminals will use one of the most harmful systems around. This system is called a zombie. A zombie is

To remain competitive and operational most insurance agencies are relying on mobile devices, social media and rethinking how they conduct business to remain relevant. Depending on whether you are in house agent, or field agent you will have the advantage of using your computer, phone, tablet to process applications. In the past agents would have to carry paper applications with them when visiting a prospective client. Modern technology is changing and applications can be processed electronically at your fingertips. Most insurance companies are shifting from point of sale system to a web based solution. This change will allow independent agents access into the policy pricing system to give the most accurate pricing information. Insurance agencies are also looking to change explanation of benefits to make it more user friendly for customers (Baseline Magazine).

On the other hand, Mukhopadhyay et al (2005) had come up with a utility model in determining the insurability of cyber risks. This model uses insurance as a supplementary tool to help reduce the financial loss due to e-risks. This model works to find the out the price of a company’s premium based on the risk profiles of the clients as well providing the types of e-risk products can be used by a particular company. This model focuses on calculation of risks in response to the premium price offered based on actuarial sciences. The utility model is based on the assumption of the user, having an initial capital of W, and access the internet through an ISP, making him vulnerable to risks of cyber attacks such as hacking and malware, hence, the risk of financial loss (X)

Without proper cyber management implementation & prevention techniques, no corporate data is immune from cyber bandits. It is a known fact there are an increasing occurrence of data breaches within major corporations. There is a continuous dilemma on the protection of consumer data especially with major headlines with consumer data. Not only are there several media reports on consumer data but also on personal data in the cloud.

In 2014, seventy million customer’s data were stolen by hackers (Yang, & Jayakumar, 2014). Hackers also made away with about £20 million (US $25.4 million) of bank customers. Germany Vodafone, a mobile telecommunication company revealed that two million customer’s information was illegally downloaded by hackers (BBC News, 2013) while in Japan, JTB, a tourism company says hackers stole eight million sensitive customer data (Wanklyn, 2016). While most hacking that has made the news, involve big businesses, small businesses are also being affected by cyber criminals. An example of how hackers are exploiting small businesses can be seen in the report of their activities in the real estate market. Hackers compromise real estate agents email and lay low till a real estate agent is about to close a sale (Fuchs, 2016). The hacker will then email instruction to the agent 's client using the compromised email address which the client is already familiar with. It is a very deceptively clever plot that takes advantage of the existing relationship between the agent and the client. Millions of dollars were reported lost to the real estate scam by one business executive (2016). Who responded to a closing cost instruction from a hacker thinking it was from his real estate agent.

As the first alternative to compete in the digital environment, I am recommending the creation of a separate and distinct external company or an internal operation that completely operates in the digital insurance market. The creation of this operation appears to be the most viable option and with the successful creation of our Bank multiple years ago, our historical experience should provide for a rapid and efficient implementation. This organization would look like a startup, yet have the advantages that many startups fail to contain in their operations such as, experience, talent, and most importantly a financial backing. For 90 years, my organization has collected intelligence, marketed to customers, sold policies, and serviced claims. Our investment portfolio has progressively succeeded financially to provide the banking to the operation. The historical data collected and the financial backing provides an initial foundation in the creation of this organization. Talented executives, management, analyst’s and employees can be offered opportunities to transfer to this organization and decisions made to balance the structure of both organizations. A great

The future of personal transportation is in complete vehicle automation. However, the risks to individuals are not as high as the media may make it seem. That being said, it is important for the public to be aware of the new threats involved in driving automated cars. A consumer interest in online vehicle security will push manufacturers to invest in better security systems to defend against hacker attacks.