(These views are the view of the Author and not necessarily the view of Valley News) 

Considering the thought of getting insurance is a good start. Finally, you see how important it is for you to think about your company’s future and security. Just like your physical body, your company’s assets deserve protection too – especially where it concerns sensitive data.

This holds true for insurance companies and brokers too. It’s a bit mind boggling how insurance companies need to get insurance too, right? Well, we know for a fact that agencies like this will benefit from this added security way more than any other agency. After all, they handle thousands of clients – each having a separate record of personal information files somewhere. Should this type of data fall into the wrong hands, serious consequences may follow (check this out). To give you a gist of what may result from a data breach, we’ve listed some likely consequences below:

  1. Identity Theft

With almost everything uploaded and done online these days, it’s easier for hackers and code breakers to gain access to a person’s sensitive information. Datum such as full names, addresses, credit card details, and IDs are few of the important and major types of information insurance companies require from clients to register them to a policy. Of course, this amount of data must be kept somewhere and since we’re long past the pen and paper methods of soliciting, compiling and storing information, you bet it’s stored online.

In case of a data breach due to weak security systems, sensitive information may be lost – or worse, stolen. This can lead to cases of identity theft wherein the hacker (or whoever it is that has your information) can assume your identity online and take part in fraudulent activities. If they manage to get their hands on your credit card or bank details, they can use this to make online purchases. If they have your IDs and other uploaded documents, they can use this to register for services or do illegal cyber activities under your name. Having your identity stolen is no joke – and we’re pretty sure your clients won’t be appreciative of it. Read more about this here: https://blog.hubspot.com/marketing/data-breach.

This brings us to our second point.

  1. Loss Of Confidence

Should there be a data breach and your clients’ information is misused or abused in some manner, the biggest consequence would be the loss of your clients’ confidence in your insurance agency. A large part of your relationship with your clients is grounded on trust. They trust you to take care of them, private information and all. If somehow, your system gets rigged and this leads to the tampering and misuse of your policy owners’ personally identifying information, uproar will surely ensue soon after. You can’t expect people to remain silent and turn a blind eye to what is obviously irresponsible handling of information.

And for clients to lose all confidence in your company? That certainly has the word “doom” spelled all over it. Remember, your success heavily relies on the satisfaction of your customers. If an insurance company can’t even handle to protect its clients’ personal information, then clients will definitely suspect the company’s capacity and capability to protect their futures. A market losing confidence is a big setback for companies that rely on people’s trust to stay in business.

  1. Bad Reputation

Of course, people aren’t joking when they say “once is enough.” It’s really true. One data breach or leak is enough to cost you people’s trust – and subsequently, your entire agency in the long run. This is simply how much people value their data privacy. And I wouldn’t blame them for being so overprotective and nit-picky when it comes to an insurance website’s security. After all, if you put me in the same situation, I will react similarly. There is much to lose by having your sensitive information stolen by questionable people. Their purpose, goals, and ambitions are unclear so it can really make you feel on edge. Not to mention, no person with pure motives will go through the trouble of stealing your online data.

Someone trying to hack into your personal files can only mean one thing: They’re planning to use it for something that is far from innocent. Otherwise, why would they go through all the trouble?

If your database has been compromised somehow and word about it gets out to the public, you can only imagine the amount of damage it will inflict on your company’s reputation. Your good name will be tarnished and people’s confidence in your services will start to fade away. This really puts your company, and all your investments, at risk.

If you don’t want this happening to you, it will be best to get your insurance company insured by reliable providers like https://www.schemeserve.com/. Fortunately, there are online software that can help you boost your databases’ security and protection. Not to mention, this type of software can help you automate most of your agency’s internal processes too such as registration, payment methods, data organization, and other similar transactions. Good software can take all the tedious tasks from your hands and give you more time to focus on things that can help your agency attain greater heights.

For everyday people, it is important to get insured if you hope for a brighter tomorrow. For insurance agencies, it is important to get insured if you hope to even have a “tomorrow” for your business. When a breach happens, it’s hard to take back. It will make such a big mess that it would take forever for you to recover. The wisest thing to do is to prevent such a thing from happening and you can do that by investing in your agency’s data security.

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