Wednesday, December 31, 2008

Ensuring Data Security For Insurance Process Outsourcing Projects

It is certainly true that achieving critical benefits such as cost savings, efficiency improvements, accuracy optimization and customer satisfaction is easier with insurance process outsourcing. However, it is advisable that insurance carriers and TPAs still take precautions because most insurance process outsourcing projects involve transfer of confidential data and information on a daily basis. Here's how both insurance carriers and insurance process outsourcing firms can work together to ensure optimal security of confidential data and information.

New Technology Deployments

Most of the insurance process outsourcing projects require a great deal of manual data entry and data processing. Not all of it can be automated, but still insurance process outsourcing firms should try to derive maximum benefits from new technology deployments. With easy availability of advanced IT tools and systems, such deployments should not be a problem for insurance process outsourcing firms. New technology deployments will significantly reduce manual interference, thereby minimizing the risks associated with data thefts and other security risks.

Installing Tamper-proof Tracking & Log Systems

Most of the insurance process outsourcing projects involve heavy use of online systems and technologies, not all of which can be classified as 100% safe. To counter both internal and external online threats, insurance process outsourcing firms need to deploy fail-safe tracking & log systems on the main network server and on individual work stations. Such deployments will help keep track of all files accessed, sent and received, and log the same on secure servers.

Creating Multiple Data Backup Options

Automated IT tools and systems, as used in insurance process outsourcing projects, are certainly fast and accurate. However, since they are also prone to problems created by hardware failure and software bugs, it would help if multiple data back-up options are created. Critical data and information, if lost, will hamper insurance process outsourcing operations, something that needs to be avoided.

If optimal security is to be achieved, then installing these systems should be given top priority by insurance process outsourcing firms. Worldwide, security threats are increasing at an alarming rate and it would help if proactive measures are introduced by insurance process outsourcing firms.