Cybersecurity in the Insurance Supply Chain: How DOXA Protects Your Agency from Third-Party Risks

Cybersecurity threats continue to escalate across the insurance industry, with supply chain vulnerabilities emerging as a major risk factor. According to a recent SecurityScorecard report, 59% of data breaches in the insurance industry are caused by third-party attack vectors—almost double the global average. For insurance agents, brokers, and carriers, this presents a significant challenge: how do you protect sensitive client data when so much of the risk lies outside your direct control?

At DOXA, we understand that a single security breach can mean financial losses, reputational damage, and regulatory headaches. That’s why we’re committed to helping insurance professionals proactively manage cybersecurity risks, strengthen third-party risk management, and ensure the long-term viability of their businesses.

The Growing Threat of Cyber Attacks in Insurance

The insurance industry is an attractive target for cybercriminals due to its wealth of sensitive personal and financial data. From policy applications to claims processing, insurers handle vast amounts of information that can be exploited for identity theft, fraud, and ransomware attacks.

SecurityScorecard’s latest findings highlight vulnerabilities in five core areas of the insurance supply chain:

• Insurance Carriers – Often the primary target due to high-value data repositories.
• Reinsurance Providers – Subject to cyber threats due to large-scale data transfers.
• Agencies & Brokers – Serve as intermediaries but often lack robust cybersecurity measures.
• Third-Party Claims Processors – Hold sensitive customer data but may not have adequate security protocols.
• Insurance-Specific Software & IT Providers – Frequently exploited by hackers as an entry point to insurers’ networks.

The report also found that application security (40%), DNS health (29%), and network security (20%) were the top weaknesses in the insurance industry. This highlights a need for proactive cybersecurity measures, particularly when dealing with third-party vendors.

What This Means for Insurance Agents

For independent agents and brokers, third-party breaches pose a significant threat. A cyberattack on a carrier, claims processor, or software provider could result in unauthorized access to customer data, leading to compliance issues, financial losses, and reputational harm. Despite an industry-wide average security score of 86/88, 28% of companies still reported breaches—double the U.S. energy sector.

Agencies and brokers scored the lowest in security assessments, meaning they are especially vulnerable. Cybercriminals see them as weak links, often using phishing, ransomware, and credential-stuffing attacks to exploit their systems. As an agent, it’s crucial to take proactive steps to protect your business and your clients.

How DOXA Can Help Protect Your Agency

DOXA understands the risks independent agents face in today’s evolving cyber landscape. We offer comprehensive solutions to help insurance professionals mitigate supply chain vulnerabilities and safeguard sensitive data. Here’s how we can support you:

1. Strengthening Third-Party Risk Management (TPRM)

Your agency depends on a network of partners, from carriers to claims processors. However, these connections can introduce cybersecurity risks. DOXA helps insurance professionals:

• Vet partners and vendors with robust security evaluations.
• Focus on securing high-risk areas, including software providers, IT vendors, and third-party claims processors.
• Ensure compliance with industry regulations and mitigate financial risks.

2. Cyber Insurance Solutions Tailored for Agents

Having a strong cybersecurity insurance policy is no longer optional—it’s essential. DOXA provides customized cyber insurance solutions designed specifically for agencies and brokers, covering:

• Data breach response and forensic investigation costs.
• Legal and regulatory compliance assistance.
• Ransomware mitigation strategies.
• Business interruption coverage in case of cyber incidents.

3. Proactive Cybersecurity Education & Training

The human element remains one of the biggest vulnerabilities in cybersecurity. Many breaches stem from phishing attacks, weak passwords, and poor cybersecurity hygiene. DOXA equips agents with:

• Employee cybersecurity training programs.
• Best practices for securing client data.
• Guidance on implementing multi-factor authentication (MFA) and strong password policies.

4. Helping You Navigate Regulatory Compliance

Cybersecurity regulations for the insurance industry are becoming stricter, with laws such as the NYDFS Cybersecurity Regulation and NAIC Data Security Model Law setting new standards. DOXA provides guidance to ensure your agency:

• Meets compliance requirements without disrupting daily operations.
• Has a clear incident response plan in place.
• Implements best-in-class security practices to reduce regulatory risks.

What You Can Do Today to Reduce Cyber Risk

As cybersecurity threats continue to evolve, agents must take immediate action to protect their businesses. Here are some key steps you can implement today:

1. Assess Your Cybersecurity Posture – Conduct a security audit to identify vulnerabilities in your agency’s systems.
2. Strengthen Vendor Management – Work with partners that prioritize cybersecurity and have strong security measures in place.
3. Enable Multi-Factor Authentication (MFA) – Require MFA for accessing sensitive systems and client data.
4. Train Your Team – Educate employees on phishing threats and proper cybersecurity practices.
5. Develop an Incident Response Plan – Have a clear protocol for responding to cyber incidents to minimize damage.
6. Consider Cyber Insurance – Protect your agency from financial losses associated with cyberattacks.

Bottom Line: The Future of Cybersecurity in Insurance

Cyber threats are not going away, and the insurance industry must stay ahead of evolving risks. By taking a proactive approach to cybersecurity and third-party risk management, agents can protect their businesses, maintain client trust, and ensure long-term success.

DOXA is here to help. Whether you need cybersecurity education, risk assessment tools, or tailored cyber insurance solutions, we provide the support you need to navigate the complexities of today’s digital insurance landscape.

Let’s connect—reach out to DOXA today to learn more about how we can help secure your agency from third-party cyber risks.

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