The hidden risks of poor email signature management in the insurance industry

Insurance companies handle highly sensitive financial and personal data, making them prime targets for phishing attacks, fraud, and data breaches. According to one lead security awareness advocate, hackers see insurance companies as ‘highly desirable’ phishing targets due to the data they hold. That’s why every email must reflect professionalism while complying with industry regulations.   

But despite the cybersecurity risks that impact insurance industry, email signatures are often neglected. Poor email signature management can expose insurance companies   to regulatory violations, legal liabilities, cybersecurity threats, and even reputational damage. 

This article explores the risks of inadequate email signature management in insurance and how companies can safeguard their communications.  

Key regulations impacting the insurance industry

Insurance businesses must adhere to strict regulations, including data protection and customer communication standards. Without compliant email signatures, they risk omitting legally required information, which can lead to regulatory breaches. 

Here’s why they matter and how they impact on the insurance industry: 

The Gramm-Leach-Bliley Act (GLBA) – U.S. 

The Gramm-Leach-Bliley Act (GLBA) mandates that insurance companies protect customer financial data and disclose their privacy policies. This includes ensuring that all client communications, including emails, comply with data protection requirements. 

 Including a GLBA compliance disclaimer in email signatures helps insurance companies meet legal standards, protect sensitive financial information, and avoid fines of up to $100,000 per violation.   

The California Consumer Privacy Act (CCPA) – U.S.  

The California Consumer Privacy Act (CCPA) grants consumers the right to know how their personal data is collected, shared, and used. Insurance companies must provide clear opt-out options and privacy policy links in customer communications. 

Including required notices in emails helps organizations avoid state-imposed penalties and protect their reputation by ensuring compliance and demonstrating accountability. 

GDPR (General Data Protection Regulation) – EU  

The General Data Protection Regulation (GDPR) emphasizes transparency and accountability in data usage and security practices, requiring insurers to clearly communicate how they handle personal information.  

Including a privacy disclaimer in email signatures helps insurers comply with GDPR regulations by demonstrating responsible data handling and ensuring transparency in every interaction. 

The Financial Conduct Authority (FCA) Regulations – UK

The Financial Conduct Authority (FCA) emphasizes transparency and regulatory compliance, requiring financial and insurance firms to disclose necessary regulatory information in client communications, including email signatures. 

Including compliant regulatory details in email signatures helps firms meet FCA requirements, avoid enforcement actions, and maintain client trust. 

The risks of mismanaged email signatures

When email signatures are mismanaged, they create significant risks for insurance firms. From financial penalties and legal disputes to reputational damage and operational inefficiencies, let’s examine the consequences of failing to secure email signatures. 

• Financial risks:  Failure to meet regulatory requirements can lead to heavy fines. Missing email disclaimers, privacy notices, or licensing details can impact revenue streams or violate compliance rules. Additionally, manually managing email signatures increases overhead costs. 

• Legal risks: Email disclaimers provide legal and regulatory protection, especially when discussing policy terms, claims decisions, or financial agreements. An incomplete or missing disclaimer exposes a firm to liability claims, regulatory penalties, or contractual disputes. 

• Reputational and brand risks: Inconsistent or missing signatures can damage an insurance company’s credibility and professionalism. This leads to lost client and delays in policy approvals or claims processing. 

• Cybersecurity risks:  Without secure, professional email signatures, cybercriminals can forge emails and impersonate employees. This increases the risk of fraud, phishing attacks, unauthorized data access, and the loss of sensitive customer information. Don’t forget that the average data breach costs $4.88 million per incident. 

• Operational inefficiencies: Without a centralized system for managing email signatures, IT teams waste time manually updating signatures. This leads to inconsistencies, slower response times, and impacted service quality. 

Real-life examples of email signature non-compliance in insurance firms 

To underscore the risks of non-compliance, let’s take a look at real-world cases where insurance companies failed to meet regulatory standards and faced significant legal and financial consequences. 

1. GEICO – $9.75 million fine for failing to prevent data breaches 

In 2023, the state of New York fined GEICO $9.75 million for inadequate cybersecurity measures that resulted in data breaches compromising the personal information of over 120,000 New Yorkers. Despite being notified by DFS of an industry-wide cyberattack, GEICO failed to conduct a comprehensive review of its systems to prevent and detect future cyberattacks, and that includes their emails. 

Unauthorized or inconsistent use of email signatures can complicate the monitoring and auditing of communications, increasing the risk of non-compliance. 

2.  Premera Blue Cross (PBC) – $6.85 million fine for HIPAA violations   

In 2020, Premera Blue Cross (PBC) was fined $6.85 million after hackers accessed the protected health information (PHI) of nearly 10.5 million individuals through a phishing email that installed malware. OCR’s investigation uncovered “systemic noncompliance” with the HIPAA Rules.  

Failing to ensure compliance in all areas, including email signatures, can increase risks. Email signatures should include confidentiality notices to prevent unauthorized sharing of sensitive information, reinforcing a secure and compliant environment.   

 3. Aviva – $11 million penalty for regulatory breaches in India 

In 2024, British insurer Aviva's India branch was found to have used fake invoices and secret cash payments to avoid compensation and tax rules, leading to potential penalties of around $11 million.  

Inadequate use of standardized email signatures with legal disclaimers can weaken transparency in financial and contractual communications, increasing the risk of fraudulent transactions.   

How centralized email signature management protects insurance companies

Managing email signatures manually in an insurance company is time-consuming and can lead to compliance issues. Using an email signature management platform simplifies the process, ensuring professionalism, security, and compliance with less effort. 

Here’s how email signature management helps insurance companies: 

• Automated compliance: Regulatory disclaimers, liability statements, and privacy notices are automatically added to every email.   

• Enhanced security and integrity: No more unauthorized email signature modifications, meaning the risk of outdated or insecure information is reduced.   

• Centralized management: Manage email signatures from a single dashboard to save IT teams time and ensure consistency across all devices.   

• Role-based customization: Assign signature templates by role, department, or location to provide accurate contact details and avoid misinterpretation.   

• Stronger brand reputation: Consistent and professional email signatures enhance credibility, build customer trust, and reflect a trustworthy brand image.   

A simple fix with big results

Insurance providers can’t afford to overlook email signature management. From regulatory non-compliance to cybersecurity threats, poor signature practices can lead to legal disputes, reputational damage, and hefty fines.   

A centralized email signature solution ensures compliance, enhances security, and maintains consistent branding across all communications. It also helps insurance teams protect their reputation and streamline operations.   

Exclaimer's email signature software meets the unique needs of insurance providers, offering automation, security, and ease of use to reduce risks and build client trust.   

Get a free trial today and see how Exclaimer can help your team work smarter and stay compliant.