Less Than Half of Insurance Firms Surveyed Use Biometric Security

Multifactor BiometricsInsurance providers haven’t fully embraced biometric security, but they probably will, according to an article from Canadian Underwriter. The insurance and risk magazine reports on a survey of 43 insurance providers that found less than half used biometric security.

That isn’t because they don’t need it. Over a third of respondents reported having been subject to between one and five security breaches, while seven percent said they’d had more than five. Almost all (98 percent) of the respondents said they use tools to encrypt files and prevent data loss, and 95 percent reported that they use virus-scanning software. But that apparently isn’t enough in today’s security environment. Increasing amounts of data are moving into the digital domain, and that is bringing about fresh security threats.

The New York State Department of Financial Services (DFS), which conducted the survey, pointed in its report to biometrics as a key security solution to counteract this new breed of breaches. “As biometric technology develops,” the report states, ” it is expected that its use will become more widespread and cost effective.” Indeed, many in the financial services sector have embraced voice biometrics, while a growing number of banking and online payment services have integrated fingerprint-based biometrics as a key part of their security apparatus. Given insurers’ focus on risk, it would seem to be only a matter of time before the majority calculate that biometric security is more than worth the investment.

February 20, 2015 – by Alex Perala