Insurance Firms Face Challenges: Digital-First Businesses to Ease the Risk - Essay Sample

Introduction

Insurance industries are created to help people plan for their future. However, individuals who register with the firms need to have confidence and trust that their finances are safe and will be provided during emergencies. Many people file for property, accident, casualty, health and financial guarantees as to their insurance levels. However, some risks typically face the insurance firms and can be hard to curb with in the long run. With companies adopting digital-first businesses to ease their activities, it is creating a competitive advantage. However, advancement in technology is exposing the insurance firms to multiple risks and contemporary challenges. Operational resilience is a situation in the North American senior benefits that could be researched in being part of an effort to create meaningful solutions to the organization. As an insurance broker in the firm, this has been a more significant challenge for the organization in ensuring the finances of insurers are safe.

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Operational resilience is the ability of the firm to respond and prevent operational disruption in its activities. The company, however, cannot fully guarantee the security of the firm's information technology. However, insurers can face the issue of service disruptions that mostly affect insurance companies. With the increasing rates of hostile cybercrimes, it has profoundly impacted the consumers, and this issue has been on the rise over the past years (Ganin et al., 2016). However, the cases are not always reported as the firm opts to maintain their reputation.

In addressing this issue, it is vital to consider the aspect of technical documentation, the causes of operational incidents, and the impacts of outsourcing. The risks associated with the complex architectural systems have to be evaluated to measure the effects of IT in insurance industries. In researching impacts of operational resilience, then it is vital to consider the differences in skills in the top management, over-confidence rate the company has on change management and issues associated with third-party suppliers.

Also, the threat associated with cybersecurity is crucial in outlining the problem. Senior managers in an organization have the responsibility of taking a regulatory measure towards operational resilience. The firm needs to keep a distance from outages and concentrating on the system in essence that outages occur and the effects it has on businesses (Suetens et al., 2017). The impacts it has on the customers, economic stability and other significant aspects is essential in managing communications among all stakeholders of the firm.

Prudential regulators are focusing on the effects of operational resilience and the importance of IT in insurance companies. Insurance companies help to curb losses experienced by insurers and promote businesses in promoting economic development, and IT contributes a lot to these functions. Therefore, IT is needed to monitor incidents as they happen and keep in contact with the consumers of the firm.

Operational resilience will be researched through the use of CERT resilience management. The approach will help to provide a process-based analysis and models of the modes of capability and measuring its effects in the insurance company. It will explore measures within significant ecosystems that involve process collection regions that are designed to achieve particular objectives. It will evaluate the disciplines of security, IT concepts and continuity of the business.

A comprehensive approach towards resilience in the insurance companies is monitoring the disaster recovery models, communication crisis, cybercrime responses, IT contingency, crucial infrastructure protection and occupant emergency. In managing the issues, then it is essential to manage assets and ensuring orderly restorations of hardware and network resources in managing risks associated with IT.

References

Ganin, A. A., Massaro, E., Gutfraind, A., Steen, N., Keisler, J. M., Kott, A., ... & Linkov, I. (2016). Operational resilience: concepts, design and analysis. Scientific reports, 6(1), 1-12. https://www.nature.com/articles/srep19540

Suetens, D., Flood, R., & Dicorato-Rura, C. (2017). Operational resilience: Developing a comprehensive operational risk strategy. Journal of Risk Management in Financial Institutions, 10(3), 289-295. https://www.ingentaconnect.com/content/hsp/jrmfi/2017/00000010/00000003/art00007