Pennsylvania Insurers Experience Network Disruptions
Two major property and casualty insurers based in Pennsylvania, Philadelphia Insurance Companies and Erie Insurance, are currently dealing with separate network disruptions that have significantly impacted their digital services and communication channels. The outages have affected phone lines, email, and online access for policyholders, though some services remain available through alternative channels.
Philadelphia Insurance Companies Outage
Philadelphia Insurance Companies, headquartered in Bala Cynwyd, confirmed a system outage on June 11. The disruption affected their phone, email, and online application access. However, policyholders were still able to file claims via phone. The company’s website displayed a message confirming the outage, which was the only online functionality available during this period.
Erie Insurance Network Outage
Erie Insurance disclosed a network outage that began on June 7, according to a statement posted on June 11. The insurer’s information security team detected unusual activity and promptly took measures to isolate and protect their systems. Erie Insurance is working closely with law enforcement and third-party cybersecurity specialists to determine the nature and scope of the incident. While the company has partially restored access through local agents and phone lines, they have cautioned customers against clicking links from unknown sources or sharing personal information via phone or email. Policyholders are advised to contact their agents directly for any policy-related inquiries.
Industry Implications
Both insurers have assured that efforts are ongoing to resolve the outages and restore normal operations. However, neither company has linked the two incidents or disclosed whether the disruptions resulted from cybersecurity breaches. The recent outages raise concerns about operational resilience and data protection within the insurance sector, particularly in light of the increasing number of cyber-related incidents affecting various industries.
Context and Background
Philadelphia Insurance is part of Japan-based Tokio Marine Holdings Inc., which reported increased net income for fiscal year 2024. However, the North American operations, including Philadelphia Insurance, saw a decline in profits due to higher losses from natural catastrophes, reduced releases of prior-year loss reserves, and loan-related provisions. These factors were partially offset by underwriting results and investment income.
The incidents at these regional insurers highlight the importance of maintaining robust cybersecurity measures and having effective contingency plans in place to minimize service disruptions and protect policyholder data.
