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Insurance News Today; Why Are Protests Affecting Insurers?

Insurance News Today; Why Are Protests Affecting Insurers?

Tuesday, July 20th, 2021

You must be aware that businesses change rapidly with the growing innovation and new techniques. However, it also paves the way for data breaches, and a higher security level monitoring is required. Therefore, insurance companies are evolving and bringing new ways to counter threats. There are now cybercrime and protests that affect insurance.

According to one study, there has been a spike of 34% in the protests rate, leading to business closure and potential losses. Therefore, insurance companies take responsibility for these outcomes and provide coverage.

Protests and Insurance

Due to notable growth in demonstrations, there has been a rampant demand for SRCC insurance, which is simply to protect businesses against losses due to unrest. Moreover, another main factor that led to an increase in these protests was the after-effects of the global financial crisis (GFC), including tight policies of government and austerity measures.

The high taxes led to people protesting more for their cause and standing for their rights. Similarly, there has been an increase of new protests recently, such as the Black Lives Matter movement and the poverty effects of the pandemic. All of these produce a taste of envy for governments and cause the demonstrations to rise.

As a result, many insurers have been delaying and cutting down on providing SRCC coverage because it can cause them a fortune. Since the number of protests is gradually rising, it’s a matter of time that SRCC insurers will have to pay fortunes to save their clients’ businesses.

BackNine and Data Breaches

Backnine is an insurance technology company that creates software to protect customer’s data for some insurance companies. Recently, some news came up that the company may have inadvertently left numerous consumer applications open for the public, i.e., anyone could access them. An Amazon server misconfiguration led to 711,000 files being open to the public.

The news is serious because confidential data, including addresses, phone numbers, medical documents, and social security numbers, may have been exposed to the public.

Final Verdict

Data breaches, ransomware, and protests are going up fast. The rate is abominable and may be a potential for fraud. Since digitization is a smoking chimney in every corner of the world, these repercussions were inevitable. Whatever it is, it’s high time now to secure your business. If you want to protect your business’s identity and reputation, check out some quotes at insurance shopping.