Digital Journal recently highlighted how BioCatch behavioral biometrics are allowing insurance companies to undergo digital transformation with less risk to their business and customers. The article cited our recent white paper, Digital Transformation in the Insurance Sector, reiterating the challenges insurance companies face as they look to offer enhanced digital capabilities.
Moving services online gives companies a huge opportunity to modernize, offer new services, create enticing customer experiences and drive growth. In a competitive market, however, the push toward digitization often overlooks the cybersecurity risks that come along with it.
In the U.S. alone, the insurance market released $1.5 trillion dollars in paid claims, making it no surprise that cyber criminals are targeting this lucrative market. Overall, insurance fraud costs an estimated $40 billion annually. These astronomical losses have moved regulators to make sure companies are taking steps toward better cybersecurity. The New York Department of Financial Services (NYDFS) cybersecurity regulation is one example. The regulation requires that an organization be able to protect sensitive information from unauthorized access and malicious attacks and use multi-factor authentication. Stronger security requirements under regulations like NYDFS are driving insurance companies to adopt more robust fraud detection technology like behavioral biometrics.
Behavioral biometrics help insurance companies fight rising fraud rates, including instances of synthetic identity fraud, account takeover fraud and payment hijacking, and meet regulatory requirements. The technology works in the background to provide frictionless user experiences and offer more secure risk-based authentication.
“These factors show the advantage of digitization for insurance companies,” Digital Journal wrote. “Leading insurance companies are now searching for effective ways to find out a uniquely identifying characteristic for each person doing business with the company.”Read the full article to learn more about how behavioral biometrics are supporting insurance companies through digital transformation and the rise of cybercrime.