Importance of Data Security in Insurance BPO

Importance of Data Security in Insurance Bpo

Similar to other industries, the insurance sector swiftly embraces digitalization and transfers most of its operations online to the cloud. This method optimizes the workflow and allows companies to extend their clientele with the help of BPO. Yet, given that insurance operations online include clients’ data, the importance of data security in insurance BPO concerns everyone.

As experts in the BPO insurance business, we decided to go over the relevance of data security in BPO industry, how BPOs handle data security, and more.

Importance of Data Security in Insurance BPO

In many aspects, insurance policy providers can significantly affect the data processes with the help of BPO insurance outsourced employees. Here’s how we help out our clients:

  • Assistance during underwriting: Our BPO employees help clients complete the underwriting process correctly.
  • Data management: As insurance policies continually receive vast amounts of data requiring filtration, our BPOs excel in managing data efficiently. That includes filtering the data entry, analysis, and processing.
  • Compliance with the terms and regulations: This is a crucial and complex task that requires knowledge and attention to detail. Employees with specialized skills in our BPO can proficiently handle this task, allowing the in-house team to concentrate on more critical assignments.
  • Fraud detection: Fraudsters are common in the insurance industry, but outsourced BPOs and advanced analytic technology might significantly minimize fraud threats.

Data security and its relevance

We know that insurance companies receive large volumes of confidential information such as personal information, medical records, banking information, etc. Due to the sensitivity of the information, insurance policies are often a target of cybercrime.

For instance, cyber-attacks, data breach attempts, and security threats are common with any insurance BPO. Insurance policies must have robust data security in multiple layers to avoid compromising the clients’ identities or reputations. 

The basic layer should include disaster recovery planning, access control, and network security. The second layer must be a human data security expert who manually monitors and intervenes in these threats.

How Do BPOs Handle Data Security?

Insurance providers operating with third parties, such as BPOs, often appear unreliable to clients due to the remote or online working mode. However, the importance of data security in insurance BPO is a top priority. 

Contrary to popular belief, we contribute expertise and prioritize the security and confidentiality of disclosed information. We use access control measures and different strategies to ensure the data is safe and secure.

Role of service providers

If you didn’t know, BPO service providers must follow through with the security measures for clients’ information, or they can face penalties of up to $2 million. We cannot afford a financial loss of that measure, so to avoid that, we perform:

  • Regular security audits: We routinely conduct security audits to eliminate the possibility of cybercrimes. We take security measures to ensure our firewall is unbreakable.
  • Relevant employee training: We always ensure our employees know the possible online threats. Plus, we prepare them with the relevant training.
  • Background checks: We conduct thorough background checks on our employees to ensure they have not been involved in criminal activities or fraud. With this, we eliminate potential internal threats. On the other hand, by specifying the security obligations in the contracts, we ensure that the security step is fully covered.
  • Encryption: We employ techniques to protect sensitive data and information are the final technical layer we include to protect our client’s data.
Role of service providers

Source: freepik.com

Access control measures

BPOs implement Role-Based Access Control (RBAC) to control the data’s safety. A security mechanism that includes encryption systems for access; only authorized employees can enter.

The mechanism is simple to understand and super convenient. Instead of managers assigning access to employees, the system will automatically grant access to the employees by role. 

In other words, the access in RBAC is automatic by roles. Also, the system uses firewalls, passwords, and other encryption processes to secure the classified information.

Benefits of RBAC

RBAC systems have many benefits for BPO companies. Some of them are:

  • Simplified access control: RBAC systems authorize employees per role, allowing managers to focus on the more complex issues.
  • Enhanced compliance to policies: RBAC security mechanisms encourage compliance by allowing organizations to implement access control policies within the terms and conditions.
  • Improved monitoring: Companies can constantly audit and monitor the behavior of the authorized employees with RBAC.
  • Optimizes the workflow: RBAC mechanism helps organize the company’s structure by granting access per role. 

Artificial Intelligence for Enhanced Data Security

To stress the importance of data security in Insurance BPO, providers consider implementing AI. Integrating AI into BPO insurance to enhance data security can be highly beneficial in many aspects. For example, to identify threats, anomalies, and repetitive patterns.

The AI algorithm can analyze large volumes of data and identify potential security threats. It can track network traffic and block suspicious activities before they even get the data. Plus, AI can analyze the code and configurations to find potential software vulnerabilities easily accessible by hackers.

Moreover, AI can significantly improve the use of authentication and access control. It can detect when authorization is compromised and take action on it. The algorithm consistently tracks the user behavior, and when it detects a difference in the pattern, it immediately bans the user from access.

Artificial Intelligence for Enhanced Data Security

Source: freepik.com

Conclusion

To conclude, the importance of data security in insurance BPO is a top priority. Besides technical protection, BPOs regularly train and educate employees on online work threats. Human monitoring is the final security layer that BPO companies include to protect client’s data.

The implementation of insurance BPO into an insurance company significantly improves the overall workflow of a company. Given that BPOs are third parties, how do they handle data security?

BPOs implement Role-Based Access Systems that help control employee access to the classified data. This mechanism uses firewalls, passwords, and encryption to ensure unbreachable access.

The AI is also beneficial for protecting client’s information. The algorithms can detect suspicious activities in a pattern and ban access even before someone tries to breach. So, if you require any services, CLICKVISION BPO is at your disposal!

With a strong background in the marketing industry and healthcare leadership roles, Filip is responsible for CLICKVISIONBPO's sales strategies and onboarding new clients. With a passion for sharing insights gained from his experience, he also shares valuable knowledge through industry related articles.

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