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MGAs Face Their Own Unique Cyber Risk

As MGAs delve deeper into the digital era, they increasingly depend on technology to service their clients and manage their everyday operations.

Yet, with these advancements come vulnerabilities. While MGAs are well-acquainted with the benefits of cybersecurity insurance for offsetting potential losses, such policies aren’t the frontline defense against cyber threats. MGAs must go beyond just insurance and proactively build a comprehensive cybersecurity framework.

Should an MGA suffer a security breach, it's not just the financial consequences that weigh heavily; it's the potential erosion of trust in the eyes of clients and prospects. Public perception can be brutal, and if you're perceived as being negligent with data privacy, it could jeopardize your ability to secure new business.

 

The Cyber Threat Landscape Facing MGAs

 

With vast troves of policyholders' data, MGAs are tantalizing targets for cyber attackers. This data, encompassing financial details, personal health information (PHI), and personally identifiable information (PII), can be exploited maliciously. Here are some typical cyber threats MGAs should be wary of:

Social Engineering: Did you know that up to 95% of cyber breaches result from human mistakes? Attackers often manipulate staff using deceptive emails or social media cues to gain unauthorized access.

Outdated Software: Cyber attackers routinely scout for software vulnerabilities. Ensuring software is up-to-date and patched is essential to thwart such tactics.

Flawed Cloud Architecture: Transitioning to the cloud is common among MGAs. However, these systems can become hotspots for cyber attacks like Denial of Service (DoS) onslaughts without secure architectures.

Dependence on Third-Party Services: MGAs often leverage external software for tasks like payment processing. Such integrations need rigorous security assessments to prevent malware infiltrations.

Neglected Hardware: Robust cybersecurity isn't solely about software. MGAs must also maintain their hardware systems to shield against potential exploits.

 

Advancing MGA Cybersecurity with Proactive Measures

 

Some proactive steps MGAs can take to reduce their risk of a cyber attack include:

Regular Risk Assessments: Underwriting often employs vulnerability scanning technology to determine an insured’s risk level. It’s vital that MGAs do the same for themselves. Find and remediate any vulnerabilities that leave an opening for an attack.

Network Firewalls: Install firewalls to monitor network traffic and create a robust defense against cybercriminals.

Cultivate a Culture of Security: Everyone in an MGA, from top-level management to entry-level staff, should prioritize data protection and stay up-to-date on compliance regulations. Invest in cybersecurity awareness training for all employees.

Website Security Monitoring: With many MGAs using online portals, it's crucial to monitor and test these platforms routinely.

 

Havoc Shield: A Partner for MGAs On Multiple Levels

 

As an MGA, your relationships with your clients are paramount to your success. Anything that threatens that trust can have devastating consequences.  Havoc Shield’s suite of cybersecurity solutions can not only help MGAs get more clients in shape for cyber policy, but it can also help MGAs keep their own promises to clients.  understands this intricacy and offers a suite tailored for MGAs. We can fortify your agency’s defenses, and our tools simplify insurance applications, ensuring alignment with cyber risk mitigation programs.

Are you curious how Havoc Shield can help you bind more cyber policies by reducing the cyber risk you and your clients face? Get in touch with us, and we’d love to show you.

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