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| The
first choice for people
in pensions |
| Providers
must address data security risk
By Sophie Baker |
| The
pensions industry must pay more attention to security in information
technology, says IT and business services company, Logica. Information security in the UK life, savings & investment and pension sector, a white paper produced by Logica following an industry survey, shows that while the industry has recognised the lessons of recent data security breaches, it still spends little on data security. On average, only seven per cent of IT budgets are dedicated to the issue. The majority of those interviewed for the survey do not view security as a board issue, with no formal measurement procedures or formal governance structures in place. The survey questioned the views of a third of the major players in the UK life, savings & investment and pension sector, including Friends Provident and Standard Life. “While the survey shows that the industry is taking the issue of data security seriously, this is not being translated into concrete actions,” said Andrew Lloyd, director of strategic solutions in the financial services division at Logica in the UK. “Security is a boardroom issue and customers are increasingly demanding greater levels of accountability. Investment in data security must increase very substantially in order to mitigate against the loss of market share and loss of reputation. “Given the global financial crisis, the issue of information security is increasingly urgent. The industry must instil a sense of consumer trust in a time of uncertainty, as many customers fear their savings and pensions are unsafe. The credit crunch might also lead to an increase in online fraud, making the case for increased investment and accountability for security even more important.” - Pensions Age November 2008 |