The foremost cyberattack on Allianz Life on the finish of July 2025 will probably be damaging to insurance coverage as a result of scale of the assault and a bit of customers’ issues round sharing private information. Reportedly, the assault impacted the vast majority of Allianz Life’s US prospects and staff. This makes it one of many largest reported cyberattacks in insurance coverage, as Allianz Life has round 1.4 million prospects within the US.
GlobalData’s 2024 Rising Traits Insurance coverage Client Survey discovered that one of many major points customers have with sharing private information is privateness issues. Of the US customers who wouldn’t be prepared to share health and wellness data with their life and well being insurer by way of an Web of Issues gadget, 53.8% mentioned it was as a result of it concerned sharing an excessive amount of data. Due to this fact, probably the most damaging features of this story to the broader insurance coverage business could also be lowered belief in sharing private information with insurers. Well being and medical information is particularly delicate, which is why this will probably be particularly damaging.
Why would you not be prepared to put on an exercise (or biotech accent) and sharing the outcomes with a life or non-public medical insurance coverage firm? (US, 2024)
The size of this assault has made it a worldwide information story reported not simply within the insurance coverage press however by mainstream publications such because the BBC, FT, and others. This may even elevate the profile of the danger of cyberattacks for companies, and particularly insurers.
GlobalData’s 2025 UK SME Insurance coverage Survey discovered that 26.2% of SMEs within the UK purchased their cyber insurance coverage coverage owing to media studies about different companies dealing with cyberattacks, whereas 19.3% have a coverage particularly as a result of a competitor of theirs fell sufferer to an assault.
General, the story is critically damaging for Allianz Life. It should pay giant fines and is already dealing with a category motion swimsuit. The size of the story can be prone to be damaging to the broader insurance coverage business when it comes to customers’ willingness to share private information. There may even be reputational harm to Allianz Life particularly, particularly within the US the place the incident occurred. Private information is important to life and well being insurers to assist tailor insurance policies and enhance behaviours to cut back threat. One small constructive for the bigger insurance coverage business is that it’s going to elevate consciousness of the threats that even the most important and greatest run companies can face, and this can be a good instance of why companies ought to have a complete cyber insurance coverage coverage in place.
