In the wake of recent data breaches, like the 2023 Infosys McCamish Systems incident affecting over 6 million individuals, the insurance sector faces mounting cybersecurity challenges. The National Association of Insurance Commissioners emphasizes, "Insurers and insurance producers must protect the highly sensitive consumer financial and health information collected." Effective B2B Identity and Access Management (IAM) is crucial for safeguarding third-party identities and maintaining trust in this high-stakes industry.
Protecting the identities of third parties — brokers, partners, subsidiaries, agents, reinsurers and customers — through an effective B2B IAM strategy is critical. Failure to protect these identities can lead to data breaches, regulatory penalties, loss of customer confidence and even legal battles.
Managing Third-Party Identities to Meet Stringent Requirements
In the insurance industry, compliance with regulations like the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA) and Digital Operational Resilience Act (DORA) is non-negotiable. These regulations impose strict rules on how companies handle customer data, including third-party access to sensitive information. This challenge grows as external identities — contractors, consultants and brokers — outnumber internal employees.
According to the Thales 2024 Data Threat Report (DTR), external identities account for almost half (48%) of total users accessing corporate networks, a number that rises to 64% if corporate clients, which fall under the B2B category, are included.
This is critical because data breaches resulting from third-party vulnerabilities can have devastating effects, both financially and reputationally. According to industry research, 54% of organizations suffered data breaches thanks to third parties in the last year, and the average cost of a data breach reached $4.9 million in 2024.
B2B IAM systems designed specifically for third-party users can play a critical role in achieving compliance. By controlling who accesses sensitive data, ensuring consent management and implementing robust authentication processes, insurance firms can maintain regulatory standards.
For instance, relationship-based access control (ReBAC) enables these entities to assign permissions based on roles and relationships. Such fine-tuned control prevents unauthorized access and maintains compliance with data privacy regulations, limiting the risk of violations and hefty fines.
See also: How Insurance Fraud Erodes Consumer Trust
Safeguarding Information Through Third-Party Access Control
Protecting customer data is paramount in an industry built on trust. The insurance sector deals with sensitive personal information, from financial records to medical histories. Any breach of this data can have severe consequences, such as regulatory penalties, legal woes and loss of customer trust.
Third-party access is a chink in the armor, as supply chain attacks and data leaks often involve external identities. According to the DTR report, nearly one-quarter of respondents cited external identities as a top three target for cyberattacks.
Effective IAM solutions mitigate this risk by only allowing third parties access to the data they are authorized to view based on customer consent. Multi-factor authentication (MFA), single-sign-on (SSO) and self-service access requests boost security further by reducing the chances of unauthorized access.
User delegation, another key feature of B2B IAM, further improves data protection. Letting partners manage their own users within defined boundaries means the burden on internal IT teams is lifted, and users who no longer need access are rapidly offboarded. This shrinks the window of opportunity for malefactors and removes standing access privileges, which could be exploited.
Streamlining Access While Minimizing Risks
For mid-sized to large insurance companies with complex B2B networks, operational efficiency is paramount. The cornerstone of effective B2B IAM is delegated user management (DUM), which significantly offloads IT and internal business managers. This feature allows organizations to delegate access rights to business partners, which can then manage their own users, creating a streamlined chain of authorization.
For example, P&V Group, a Belgian insurer, implemented a customer identity and access management (CIAM) solution to provide secure, 24/7 access to services for its vast network of brokers and independent advisers. This implementation reduced administrative tasks, created more efficient workflows and improved customer service.
Similarly, Klaverblad, a Dutch insurer, adopted a cloud-based B2B IAM platform that features complete eHerkenning login capabilities, including SSO and two-factor authentication. This solution not only enhanced security but also improved user experience for their independent advisers and business users.
These case studies demonstrate how B2B IAM solutions can simplify the onboarding and offboarding of external users while ensuring compliance with regulatory requirements. By unifying the management of internal and external identities, these systems grant access securely and efficiently, addressing the challenge of security consistency across workforce and non-workforce identities.
As insurance companies digitize their operations, scalable IAM systems become crucial. Automated workflows for provisioning and de-provisioning access improve security, enable faster response times and ultimately lead to improved productivity and cost savings.
See also: Top 10 Challenges for Data Security
Integrating Security and Business Enablement
As business environments grow more connected, managing third-party identities goes beyond security to become a true business enabler. B2B IAM solutions help streamline all these external relationships, ensuring that security does not become a barrier to business growth.
Insurance firms that effectively implement B2B IAM can cut the costs of administering third-party users while protecting themselves against identity-based attacks. These solutions also help insurers stay on the right side of regulatory watchdogs, protect their customers' personal information and enhance operations.
