Modern Insurance Magazine Issue 65

INSURTECH
QWhat are some of the most pressing cybersecurity
issues facing the insurance industry in particular? How
often should insurance companies conduct security
assessments and vulnerability testing?
For insurance incumbents and insurtechs alike,
there is no ‘one size fits all’ answer, as it depends
A on various factors such as the size of the company,
the complexity of its IT infrastructure, regulatory
requirements, and the evolving threat landscape. Security
assessments and vulnerability testing should be done on
a defined regular basis, and augmented whenever there
are emerging threats, or significant changes to the IT
environment.
Some of the most omnipresent issues include ransomware
attacks, which have become increasingly common in
recent years. Cybercriminals have been known to target
organizations of all sizes, including insurance companies.
The FBI advises companies not to pay ransoms. Nearly
30% of victims did so last year, which is down 72% from
four years earlier. According to The Wall Street Journal,
the average ransom is $569,000 USD.
Insurance companies are also subject to various
regulations regarding data protection and privacy, such as
GDPR, CCPA, and HIPAA in the United States. All of these
can be compromised.
Finally, third party risk via third-party vendors and
partners increases the risk of a supply chain attack.
KPMG completed a study where 75% of the respondents
experienced a major business disruption because of a
third party in the last three years.
Lisa Pollina is a business executive who has
negotiated over $50 Billion in corporate development
deals throughout her career. She provides private
equity investment advisory for alternative asset
manager Ares Management (NYSE: ARES) on
both Growth and Special Opportunities portfolio
investments worldwide. She also serves on the
Board of Directors for Munich RE (FRA: MUNV2),
representing the Americas.
Pollina has had global Profit & Loss responsibility for
over 20 years. She is the past
Vice Chairman for RBC Capital Markets, an $8 Billion
division of the Royal Bank of Canada (NYSE: RY),
where she grew revenues by 27% during her tenure,
and the Global Financial Institutions (FIG) Executive
for Bank of America Securities (NYSE: BAC). Under
her leadership there, profitable revenues grew over
18%.
Named one of the ‘Top 25 Most Powerful Women
in Finance’ by American Banker magazine, she has
been a seven-year appointee to the Federal Reserve
Bank of the United States’ Working Group on Global
Markets, providing perspectives on macro trends
worldwide.
Ms. Pollina is an MBA graduate from the Yale School
of Management. She has taught strategy at Yale
University and corporate finance at the University
of Chicago. She has been published via such media
outlets as Forbes, Bloomberg and Morningstar
magazines.
In 2021, during the tenure of Pope Francis, Pollina was
made a Dame in the Sovereign Military Order of St.
John of Jerusalem, of Rhodes, and of Malta.
QWhat advice do you have for the C-suite and Boards
of Directors when it comes to working together and
collaborating against mounting cybersecurity risk?
A
Establish a Cybersecurity Governance Structure that
clearly delineates how the duty of care in this area
will be deployed by implementing clear roles and
responsibilities for the C-suite and the Board regarding
cybersecurity oversight.
Facilitate open and transparent communication
channels between the C-suite and the Board regarding
cybersecurity matters. Provide regular updates on
cybersecurity incidents through audits to the Board and
Audit Committee.
Insurance is in the business of risk. Ensure that
cybersecurity initiatives are aligned with your firm’s risk
appetite, goals, and priorities. Collaborate on identifying
and prioritizing cybersecurity risks based on their
potential impact on the business.
Invest in cybersecurity resilience by allocating adequate
resources and budget to cybersecurity initiatives,
including technology investments, training, and third-party
experts in emerging cybersecurity areas.
Lisa Pollina
MODERN INSURANCE | 77