One of America’s largest home and auto insurers has notified regulators and customers of a cybersecurity incident and related network outage. Fortune 500 business Erie Insurance employs over 7000 staff and 14,000 agents, with parent company Erie Indemnity Company posting revenue of close to $4bn last year. It currently boasts over six million active policies. However, the firm warned customers yesterday of an “ongoing network outage” related to a confirmed “information security event” which was discovered last weekend.
“On Saturday, June 7, Erie Insurance’s information security team identified unusual network activity. We took immediate action to respond to the situation to safeguard our systems and data. Since Saturday, we have continued to take protective action for the security of our systems,” a notice on its website revealed. “During this outage, Erie Insurance will not call or email customers to request payments. As is best practice, do not click any links from unknown sources or provide your personal information by phone or email.”[1]
The latter suggests that the company is concerned that cybercriminals either have access to customer data and/or may use the incident itself to launch phishing attacks.
A related SEC filing had little else to say aside from the fact that law enforcement has been notified and that the firm continues to work through its incident response protocols.
“The company continues to take protective measures and is conducting forensic analysis with the assistance of leading third-party cybersecurity experts to gain a full understanding of this event,” it noted. “Given the recency of the event, the company’s investigation and response are ongoing, and the full scope, nature, and ultimate impact on the company are not yet known.”
While unclear, the network outage is most likely the result of internal efforts to contain the blast radius of the attack. Insurers are a popular target for cyber-attack given the large volumes of sensitive customer data they hold.
History, Services, and Values - Erie Insurance, headquartered in Erie, Pennsylvania, is a leading provider of insurance services in the United States. Since its founding in 1925, the company has dedicated itself to delivering exceptional service and comprehensive coverage, embodying the principles of honesty, fairness, and customer satisfaction.
History and Growth - Erie Insurance was established by H.O. Hirt and O.G. Crawford with a vision to create a company focused on service and integrity. It began as a modest auto insurance provider but rapidly expanded its product offerings and geographic reach over the decades. Today, Erie Insurance operates in 12 states and the District of Columbia, serving millions of policyholders. The company’s commitment to innovation has been a cornerstone of its success. Erie Insurance was among the first to develop multi-policy discounts and introduce services like replacement cost coverage for homeowners. This forward-thinking approach has solidified its reputation as a trusted name in the insurance industry.
Insurance Products and Services - Erie Insurance offers a wide range of products designed to meet the diverse needs of individuals, families, and businesses. These include:
- Auto Insurance - Erie's auto insurance policies are renowned for their comprehensive coverage and affordability. The company provides benefits such as first-accident forgiveness, pet injury coverage, and rental car expense reimbursement. Customers can also customize their policies with add-ons like roadside assistance and rideshare coverage.
- Home Insurance - Erie’s homeowners insurance policies offer robust protection for personal property, dwellings, and liability. Unique features include guaranteed replacement cost coverage, which ensures that policyholders can rebuild their homes regardless of rising construction costs. Additional options include coverage for valuable items, identity recovery, and flood damage.
- Life Insurance - Erie Insurance provides a variety of life insurance plans, including term life, whole life, and universal life policies. These plans are designed to offer financial security for loved ones in the event of the policyholder’s death, as well as options for building long-term savings.
- Business Insurance - Erie’s business insurance solutions cater to small and medium-sized enterprises across various industries. Coverage options include property insurance, liability insurance, workers’ compensation, and commercial auto insurance. The company also offers specialized policies tailored to specific business needs.
Customer Experience - One of Erie Insurance's defining qualities is its emphasis on providing exceptional customer service. The company maintains a network of independent agents who work closely with clients to understand their needs and recommend suitable coverage. This personalized approach has earned Erie Insurance high rankings in customer satisfaction surveys conducted by organizations like J.D. Power.
Erie Insurance also prides itself on its claims process, which is designed to be efficient, transparent, and stress-free. Policyholders can file claims online or through their local agents, and the company’s dedicated claims team ensures prompt resolution.
Financial Strength and Stability - Erie Insurance is consistently rated highly for its financial strength by leading credit rating agencies, including A.M. Best. These ratings reflect the company’s ability to meet its obligations to policyholders and maintain stability during economic fluctuations. This financial robustness provides customers with peace of mind, knowing their coverage is backed by a stable and reliable institution.
Community Involvement - Erie Insurance is deeply committed to giving back to the communities it serves. Through initiatives like the Erie Insurance Giving Network, the company supports local organizations, educational programs, and disaster relief efforts. Employees are encouraged to volunteer their time and expertise, fostering a culture of corporate social responsibility.
Core Values and Mission - The mission of Erie Insurance is encapsulated in its commitment to being "Above all in service." The company strives to exceed customer expectations by providing high-quality insurance products, delivering unparalleled service, and building lasting relationships.
Erie Insurance’s core values include:
- Integrity: Acting with honesty and fairness in every interaction.
- Service: Prioritizing the needs of customers and communities.
- Innovation: Continuously improving products and processes to meet evolving needs.
- Excellence: Maintaining high standards in every aspect of the business.
- Future Outlook
As Erie Insurance approaches its centennial, the company is poised for continued growth and innovation. By leveraging advancements in technology and expanding its product offerings, Erie Insurance aims to remain a leader in the insurance industry. Its unwavering dedication to service and community ensures that it will continue to make a positive impact for years to come.
This article is shared at no charge for educational and informational purposes only.
Red Sky Alliance is a Cyber Threat Analysis and Intelligence Service organization. We provide indicators of compromise information via a notification service (RedXray) or an analysis service (CTAC). For questions, comments or assistance, please contact the office directly at 1-844-492-7225, or feedback@redskyalliance.com
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[1] https://www.infosecurity-magazine.com/news/phishing-alert-erie-insurance/
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