As cyber threats grow more advanced by the day, safeguarding sensitive customer data has become a top priority—especially within the core systems that power the insurance industry. In response, insurers are doubling down on cybersecurity, and insurtechs are playing a pivotal role in leading this charge.

These tech-savvy companies are going beyond traditional defenses, leveraging innovations like ai powered threat detection and automation to stay ahead of potential risks. Rather than waiting for issues to arise, they’re taking proactive steps to secure insurance platforms from the ground up.

Why Cybersecurity is Crucial in Insurance

Property and casualty (P&C) insurers handle large volumes of personal and financial information, making them prime targets for cyberattacks. While digital transformation—through tools like cloud computing, AI, and IoT—has boosted efficiency, it has also opened new doors to potential vulnerabilities.

For insurance providers, investing in robust cybersecurity isn't just about regulatory compliance; it's essential for business continuity in an increasingly perilous digital environment.

One case that underscores this urgency is the 2020 Folksam data breach in Sweden. Folksam, a major insurer, inadvertently exposed private customer information—affecting nearly one million people—by sharing it with companies like Facebook, Google, Microsoft, LinkedIn, and Adobe. The aim was to improve customer experiences through behavior analysis, but the lack of adequate safeguards turned a good intention into a major privacy incident.

Although Folksam stated there was no evidence of data misuse, the breach raised serious concerns among both customers and regulators. It served as a stark reminder that even internal missteps can lead to serious security failures if the right precautions aren't in place.

Core Insurance Platforms: Securing the Digital Engine

The core platform of a P&C insurer—handling critical functions like policy management, claims, billing, and customer service—is essentially the heart of operations. But without proper protection, it's also one of the most attractive targets for cybercriminals.

AI: A Smart and Tireless Security Partner

Forward-thinking insurers are now embedding ai powered threat detection Security Operations Center (SOC) tools directly into their core platforms. These systems offer 24/7 vigilance and are capable of:

• Detecting Anomalies: Machine learning models monitor for irregular activity across claims, underwriting, and policy changes—like a sudden surge in claims from one region or multiple requests to update policy details. These may signal fraud or breaches in progress.

• Automating Responses: When a threat is identified, AI can take immediate action—such as isolating affected systems, disabling compromised user accounts, or shutting down vulnerable servers—to prevent further damage.

• Predicting Future Attacks: By analyzing global threat data and activity on the dark web, AI helps insurers anticipate potential attack methods and strengthen their defenses before threats materialize.

Take Zurich Insurance, for example. Their ai powered threat detection systems recently detected a credential-stuffing attack targeting their SME customers in Asia. Within hours, thousands of unauthorized login attempts were blocked—thanks to AI's seamless integration with their core systems.