Data from HG Insights, the global leader in technology intelligence, shows that the insurance sector has invested a significant $4.5bn in security software.
A key driver for this level of investment has been the dramatic rise in cybercrime during the Coronavirus outbreak.
Due to the vast amounts of sensitive personal data that insurance companies have on their customers, they are an attractive target for cybercriminals. The first 100 days of the pandemic alone saw a 33% increase in malicious activity reports security firm Mimecast. Furthermore, the attacks were timed with spikes in cases to leverage heightened fear and uncertainty.
Recently, a leading medical-research institution working on a cure for COVID-19 admitted to paying a $1.14m extortion fee after a ransomware attack on the University of California San Francisco. Cyberattacks against several US states, including Washington, Florida, and Hawaii, have also resulted in the loss of hundreds of millions of dollars.
Investment by Region
The insurance sector’s $4.5bn spend on security software by region is: AMER (North, Central, South America and the Caribbean) $2bn; APAC (Asia Pacific) 1.5bn; EMEA (Europe, Middle-East and Africa) $1bn.
Biggest Spenders by Industry
The sector’s total spend represents 9% of the 49.3bn invested by all industry sectors across the board. Indeed, the five biggest spenders by industry are: Banking and Financial Services ($10.1bn); Public Administration ($8.4bn); Professional, Scientific and Technical Services ($5.5bn); Insurance ($4.5bn); and Manufacturing ($3.6bn).
The business of insurance has always revolved around trust and a security breach will impact on an insurance company’s market value and brand. It has been well documented that most successful data breaches and hacks stem from phishing scams and Trojan Horse attacks. Successful breaches of insurance companies often result in reputational damage and compensation claims and firms are investing significantly in security technology as a result.
Identifying Companies Susceptible to Attack
HG Insights can show which organizations are yet to spend sufficiently, those with outdated security postures, running end-of-life tools that are no longer fit for purpose and therefore potentially more susceptible to breach.
Vendors are using HG Insights’ spend and installed technology intelligence to focus on the most lucrative and highest propensity prospects – those organizations who will have to invest to safeguard their customers, brand, and future revenues.
Insights of the leading insurance firms spending on security software through the pandemic are available now to better optimize your ICP (Ideal Customer Profile) targeting and accelerate your sales success. Book a demo now to see which companies are your best prospects, whether it’s new logo acquisition or cross-sell/upsell: