As cyber threats grow more complex by the day, safeguarding customer data has become a top priority—especially within the core systems that power the insurance industry. Today’s insurers aren’t just improving their cybersecurity; they’re transforming it. And insurtechs are leading the charge.

By integrating technologies like AI-driven threat detection soc security operations center and automating key security processes, insurtechs are moving beyond reactive approaches. They’re proactively tackling risks before they can impact insurers or their customers.

Why Cybersecurity Is Now a Business Imperative in Insurance

Property and casualty (P&C) insurance companies hold vast amounts of sensitive data—everything from personal details to financial records. That makes them prime targets for cybercriminals. As the industry embraces digital transformation through cloud computing, AI, and IoT, new efficiencies are being realized—but so are new vulnerabilities.

In today’s environment, robust cybersecurity isn't just about regulatory compliance—it’s about protecting the very core of the business.

Let’s look at a real-life incident that sent shockwaves through the industry. In 2020, Swedish insurer Folksam unintentionally exposed the private data of around one million customers. The cause? Not hackers, but an internal mistake. In an effort to personalize customer experiences, Folksam shared sensitive information with tech giants like Facebook, Google, Microsoft, LinkedIn, and Adobe.

Although Folksam stated there was no indication the data had been misused, the incident sparked major concerns among customers and regulators. It underscored a hard truth: even well-meaning initiatives can result in serious breaches if the right safeguards aren’t in place.

Core Insurance Platforms: Security Is No Longer Optional

The core platform—handling everything from policy administration and claims to billing and customer service—is the beating heart of any P&C insurer. And if it's not secured, it's an open door for cyberattacks.

AI: The Always-On Ally in Cyber Defense

Forward-thinking insurers are embedding AI-powered soc security operations center directly into their core systems. These aren’t just fancy add-ons—they’re becoming essential features that work 24/7 to keep threats at bay. Here's how AI is making a real difference:

• Detecting Anomalies: AI models spot unusual activity, like a sudden surge in claims from one region or multiple requests to alter policy details, which could point to fraud or breaches.

• Automating Responses: When threats are detected, AI can act immediately—isolating compromised systems, disabling user accounts, or shutting down vulnerable servers before damage spreads.

• Predicting Future Threats: By scanning threat intelligence and monitoring dark web activity, AI can help insurers identify emerging risks—like new malware strains or potential third-party vulnerabilities—before they’re exploited.

Take Zurich Insurance as an example. Their AI tools soc security operations center recently intercepted a credential-stuffing attack targeting small business clients in Asia. Thousands of fake login attempts were blocked in just a few hours—proof that when AI is built into the system, real-time protection is possible.