IT Security Issues in Insurance
| New York, NY, USA May 12, 2004
Reports Published by Celent
US Insurers will spend an estimated US$618 million on security in 2004, rising to US$772 million by 2006.
Security is a top priority for insurance IT groups. The recent growth of privacy regulations along with the explosion of hacks, viruses, worms, and other threats that can compromise information, damage networks, and cripple business processes, have put the issue of security at the forefront. Security-related spending currently accounts for an estimated average of 3% of total IT budgets, or US$618 million. Celent estimates that this will grow to 3.4% or US$772 million by 2006.
While much has been written by specialists about IT security in general, there has been little written specifically from an insurance point of view. Celents new report , , is designed to familiarize insurance business and IT executives by providing an overview of some of the key issues and practices that fall under the general rubric of "IT security" for insurers. It provides insight into top concerns, activities, and priorities, as well as current and projected spending and staffing levels. The report is based primarily on an online survey of 19 insurance executives at top-tier carriers in the life and property/casualty sectors conducted in February and March of 2004.
"Security is top of mind for insurance IT groups ,"says Matthew Josefowicz, Manager of Celents insurance group and author of the report. "But, encouragingly, most insurers seem to be taking a rational and strategic approach to the issue. Assessments of current vulnerabilities and overall strategy development were consistently cited by insurers as their highest priority security initiatives. This bodes well for the industry."
The report examines insurers organizational, staffing, and budgetary response to IT security threats, as well as greatest perceived risks, business drivers, current initiatives, and regulatory pressures. It concludes with five key recommendations for insurers.
The 21-page report contains 13 figures. A Table of contents is available online.
of Celent Communications' Property/Casualty Insurance and Life/Health Insurance research services can download the report electronically by clicking on the icon to the left. Non-members should contact email@example.com for more information.