IDEAS home Printed from https://ideas.repec.org/a/rbs/ijbrss/v11y2022i6p334-340.html
   My bibliography  Save this article

Effect of cybersecurity risk management practices on performance of insurance sector: A review of literature

Author

Listed:
  • Ben Kejwang

    (PhD, Chartered Insurer, Chief Executive Officer, College of Insurance, Nairobi, Kenya)

Abstract

Cybersecurity is a set of technologies, processes, practices, and response and mitigation measures aimed at ensuring the confidentiality, integrity, and availability of networks, computers, programs, and data against attack, damage, or unwanted access. Cyber security risk management strategies include limiting data access to avoid putting sensitive information at risk. The purpose of the study therefore is to evaluate the effect of cybersecurity risk management practices on performance of insurance sector. A desktop literature review was used for this purpose. Relevant seminal references and journal articles for the study were identified using Google Scholar. The inclusion criteria entailed papers that were not over ten years old. According to the findings, detected cyber risks need to be properly addressed in order to prevent secondary impacts that lead to vulnerabilities that interfere with the life of insurance institutions and the well-being of their customers. In addition, the study concluded that insurance industry performance can be improved through the implementation of cybersecurity risk management practices. Since it has been found that cybersecurity risk management strategies have a positive and significant impact on the performance of the insurance sector, the research recommends that insurance companies increase their use. Additionally, financial institutions ought to have funds set aside specifically for the purpose of facilitating the retention of risks, in the event that these risks actually materialize. In addition, the research suggests that insurance companies reorganize their product lines or establish premiums that are competitive in order to reduce the threat posed by their rivals and, as a result, prevent the loss of customers to those rivals. The research further suggest that insurance companies adopt appropriate product pricing in line with estimated risk, as this will ultimately lead to increased profitability. Key Words:Cybersecurity, Risk Management Practices, Insurance Sector

Suggested Citation

  • Ben Kejwang, 2022. "Effect of cybersecurity risk management practices on performance of insurance sector: A review of literature," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(6), pages 334-340, September.
    • Handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:334-340
    DOI: 10.20525/ijrbs.v11i6.1947
    as

    Download full text from publisher

    File URL: https://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/1947/1415
    Download Restriction: no
    File URL: https://doi.org/10.20525/ijrbs.v11i6.1947
    Download Restriction: no
    File URL: https://libkey.io/10.20525/ijrbs.v11i6.1947?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nadine Gatzert & Madeline Schubert, 2022. "Cyber risk management in the US banking and insurance industry: A textual and empirical analysis of determinants and value," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 89(3), pages 725-763, September.
    2. Lee, In, 2021. "Cybersecurity: Risk management framework and investment cost analysis," Business Horizons, Elsevier, vol. 64(5), pages 659-671.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wafa Mohammad Abdaljabar & Norhayati Zakuan & Muhamad Zameri Mat Saman & Mariam Setapa, 2024. "The Practice of Enterprise Risk Management and Sustainable Performance in Jordan," Information Management and Business Review, AMH International, vol. 16(1), pages 329-342.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Agbodoh-Falschau, Kouassi Raymond & Ravaonorohanta, Bako Harinivo, 2023. "Investigating the influence of governance determinants on reporting cybersecurity incidents to police: Evidence from Canadian organizations’ perspectives," Technology in Society, Elsevier, vol. 74(C).
    2. Slapničar, Sergeja & Axelsen, Micheal & Bongiovanni, Ivano & Stockdale, David, 2023. "A pathway model to five lines of accountability in cybersecurity governance," International Journal of Accounting Information Systems, Elsevier, vol. 51(C).
    3. Henock Mulugeta Melaku, 2023. "Context-Based and Adaptive Cybersecurity Risk Management Framework," Risks, MDPI, vol. 11(6), pages 1-22, May.
    4. Saif Hussein Abdallah Alghazo & Norshima Humaidi & Shereen Noranee, 2023. "Assessing Information Security Competencies of Firm Leaders towards Improving Procedural Information Security Countermeasure: Awareness and Cybersecurity Protective Behavior," Information Management and Business Review, AMH International, vol. 15(1), pages 1-13.
    5. Serkan Eti & Hasan Dinçer & Hasan Meral & Serhat Yüksel & Yaşar Gökalp, 2024. "Insurtech in Europe: identifying the top investment priorities for driving innovation," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-24, December.
    6. Martin Boyer & Martin Eling, 2023. "New advances on cyber risk and cyber insurance," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(2), pages 267-274, April.
    7. Hyoung-Joo Lim & Dafydd Mali, 2024. "Does Market Performance (Tobin’s Q) Have A Negative Effect On Credit Ratings? Evidence From South Korea," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 31(1), pages 53-80, March.
    8. Philippe Funk, 2022. "Artificial Intelligence And Cybersecurity Implications For Business Management," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 16(1), pages 252-261.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rbs:ijbrss:v:11:y:2022:i:6:p:334-340. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ssbffea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.