Inadequate data encryption is making insurers across the industry vulnerable to security breaches.

The insurance industry has a reputation for stability, expertise, and thoroughness.These strengths are the product of time. Longevity has its purpose in insurance, which has a history punctuated by economic calamity, war, and social and political upheaval. The great insurers of yesteryear remain the great insurers of today.

The institutional integrity of many of our most recognizable insurers is solid.Individual agents provide steady reassurance, thorough marketing, advertising and professionalism that are assets to the industry and provide a favorable impression to policyholders.

However, despite this sense of security, policies cannot just be protected by thick stainless steel doors and stacked certificates of indemnification, alphabetized and aligned in symmetrical rows. Beyond the physically dense climate-controlled bunkers and vaults, where room temperature prevents the yellowing of these documents and insurers protect against fires and floods, the cleverest thieves -- armed with the most valuable intelligence -- can destroy an insurance company in a few minutes or hours. This is where all the standard operating procedures of the insurance industry collapse.

I refer, specifically, to the inadequate encryption that makes every insurervulnerable to massive data breaches. Please note that I issue this statement based on experience, not exaggeration or an appetite for sensationalism. In my role as founder of Impervio E-IRM System (Enhanced Information Rights Management), I seek to empower insurers against these threats. Impervio is a testament to this commitment because it is, by the strictest definition of the word, impenetrable.

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While insurers do a commendable job of trying to educate the public about security, they do not have the encryption necessary to win the battle against hackers and cyber criminals. Put a different way, the existing form of encryption -- the system that governs so many industries -- relies on the false assertion that it would take someone 3,000 years to break this code.

This presumption is seriously inaccurate because, in reality, the trained eye can spot gaping holes and points of weakness within this theory. Sophisticated thieves already know when and how to exploit these security vulnerabilities, which act as gateways to confidential client data, electronic medical records, intra-office communications, personal checking account codes and credit card numbers.

To better appreciate the gravity of this situation, think of current forms of encryption as four massive walls that surround a vital piece of intellectual property. From a distance, like its physical corollary between East and West Berlin, or its even lengthier cousin known as the Maginot Line, this wall looks impressive -- and imposing -- until you see all the cracks and barren sections previously covered by concrete now exposed with a thin pane of asbestos and chicken wire.

The cyber equivalent to these frayed walls and abandoned outposts is the model of encryption insurers continue to use. Indeed, the best example of the need for a superior method of encryption involves what we see and hear every day, particularly advertisements from security experts who claim they have the latest patch (for a patch, on top of another patch) to fix a breach.

Here is the original post:
The Future of Data Encryption in Insurance

Q: One of the things I keep hearing about because of the Sony hack is encryption, but how exactly do I get it setup for my business?

A: There isnt enough space in this column to cover all the lessons that can be learned from what continues to come out of the Sony Pictures massive hacking event.

The use of encryption is a big one because it can provide an excellent level of security even if cyber thieves make off with thousands of sensitive files via a compromised computer.

Anytime everyone has access to everything on a business network without any real security, hackers need only compromise one user to wreak havoc for everyone (the likely scenario in the Sony hack).

Encryption acts as another security barrier that will generally cause the hackers to move on because of the time that it will take to break the encryption.

Encryption technology is built into most operating systems; Windows has BitLocker for workstations and servers while Mac OS X has FileVault or you can use encryption programs from many third party companies.

But before you make any decisions to start encrypting your data, you really should review all of the options, pros, cons, security and backup measures to make sure you dont inadvertently lock yourself out of your own data.

Encryption strategy needs to be thought through, so make sure you consult your IT support group before you get started.

Another simple step that Sony could have taken to protect data was to create individual passwords for sensitive data files.

Just about every type of business program you use has an option to password protect the individual files.

The rest is here:
Data Doctors: Lessons for all from the Sony hack