9 Security Best Practices for Health Insurance Agencies

Table of Contents

• Create complex passwords
• Don’t use the same password twice
• Change your passwords often
• Use a password manager
• Use multi-factor authentication whenever possible
• Lock your devices
• Use an antivirus program
• Train your team on internal security
• Partner with vendors who prioritize cybersecurity
• How to increase your security with AMS+

Key Takeaways

Security Tips Every Health Insurance Agent Should Know

With the advancements of technology come the advancements in hacking. They are two halves of the same coin.

Cyber threats can create serious risks for health insurance agents and agencies that manage large amounts of personal and financial information. But don’t fret. There are steps you can take and best practices you can follow to keep your data safe. The first step is to build a strong defense, including smarter passwords and more secure accounts.

In this blog, we’ll cover 9 best practices your health insurance agency can put into place right now to strengthen security and reduce risk.

Tip #1: Create Complex Passwords

Your first line of defense against cyber threats starts with a strong password. While it might seem simple, creating a truly secure password requires more thought than many people realize.

The Cybersecurity and Infrastructure Security Agency (CISA) put together a list of  guidelines to help you strengthen your security. Here are five strong password best practices you should consider:

1. Make your password long: Your password should be at least 16 characters in length. Follow the rhyme: longer is stronger.
2. Make it random: Use a random string of mixed-case letters, numbers, and symbols (Example: cXmnZK65rf*&DaaD).
3. Create a passphrase: Go for something memorable and create a passphrase of 4-7 unrelated words, like Silly Birds Vacuum 4 Mars.
4. Avoid common information: Don't use birthdays, pet names, or easily guessed information to make your password, like My Birthday is December 19.
5. Avoid common passwords: Similar to above, avoid using common passwords, like those found on this list (Example: Password123).

▶️ Bonus Tip: Don’t use any of the example passwords from above.

Tip #2: Don’t Use the Same Password Twice

This is probably the hardest password rule to follow. But it’s also one of the most important ones to remember.

Research shows 51% of people reuse passwords across business and personal accounts. While reusing the same password may be convenient, it opens the door to widespread security breaches. If one password or account is compromised, it puts all your other accounts with the same password at risk.

Not sure where you’re using the same password? Use a password manager tool to help you manage all of your passwords and identify the duplicates.

Tip #3: Change Your Passwords Often

Keep your passwords fresh to help you stay ahead of potential threats. The best way to do that is to change your passwords regularly.

Create a manageable routine for resetting your passwords by setting a schedule or letting password managers or other security apps prompt you when updates are due.

Tip #4: Use a Password Manager

We’ve mentioned this a couple of times now, but let’s dive into what a password manager is. A password manager is “a software application designed to store and manage online credentials.”

There are 6 advantages to using a password manager for insurance agencies:

1. Removes one of the main risks of a data breach as they generate passwords for user logins that are designed to be strong and difficult to hack.
2. Sets security standards for logins throughout your organization.
3. Make passwords accessible on all devices as long as you have your credentials for the password manager.
4. Increases productivity.
5. Provides usage reports and activity logs.
6. Helps you avoid being locked out if someone leaves the agency.

By centralizing password management, your agency can reduce human error, eliminate weak or reused passwords, and maintain consistency in security practices across your entire team.

Tip #5: Use Multi-Factor Authentication Whenever Possible

While your username and password serve as the first layer of security, multi-factor authentication adds an extra layer by requiring verification from a separate device or system linked to your account. You may also know this term as two-step authentication or two-factor authentication. 

Putting this extra process into place can prevent hackers from compromising your account because they likely won’t have access to your username, password, and the third-party system.

Common multi-factor authentication methods include:

• A text message with a specific code
• An email with a specific code
• A phone call with a specific code
• After logging into your email with your credentials, you might need to select a specific number (like 22) on your phone to complete the login
• Authenticator apps like Google Authenticator

Another way to add extra levels of security is to implement IP address restrictions to further limit access to your systems. This allows you to specify which IP addresses or ranges can access your tools, like your agency management system (AMS), creating an additional barrier against unauthorized access attempts from unknown or suspicious locations.

Tip #6: Lock Your Devices

One of the most effective ways to enhance your insurance agency’s security is to consistently lock your devices.

Your computer contains valuable information. Make it a routine to lock your device every time you step away, even if it's for a brief phone call or bathroom break. Building this habit reinforces good security practices and provides greater confidence that your data remains protected when you're not at your device.

Tip #7: Use an Antivirus Program

An antivirus program provides essential automated protection that works continuously without requiring constant attention from you or your team. These programs detect and remove malicious software before it can compromise your systems or data. Antivirus software helps prevent security incidents that could lead to costly downtime, data loss, and damage to your company's reputation.

Tip #8: Train Your Team on Internal Security

Equip your team with the knowledge they need to operate safely and securely throughout their workday. Regular internal security training sessions are one of the most effective ways to keep your health insurance agency more secure. These types of training identify common threats and teach best practices your team can follow.

Regular internal security training sessions give employees the skills they need to recognize and prevent threats.

Tip #9:  Partner with Vendors Who Prioritize Cybersecurity

When looking for a secure AMS for health insurance agencies, it's crucial to assess the vendor's cybersecurity practices thoroughly. Here are some essential insurance agency vendor security questions to ask:

• How is my data protected?
• Do you protect data in transit and at rest?
• Who owns my data?
• Who has access to my data?
• How do you ensure my data is protected from newly found vulnerabilities?

Want to see all of the questions? Download our complete insurtech vendor security questions checklist.

Another area to focus on is the vendor’s security principles. Some common ones to ask about include:

• SOC 2 Type II Report
• HIPAA
• HITRUST

Increase Your Security With AMS+

Adopting these cybersecurity best practices can considerably improve your agency’s security, but the right AMS can take your data protection even further. When you centralize your client data, policy management, and business operations in one secure platform, you eliminate the vulnerabilities that come with managing information across multiple systems.

It also matters who you partner with for technology. Here at AgencyBloc, we take security seriously. We are HIPAA compliant and audited regularly for HITRUST and SOC 2 Type II.

By combining AMS+ built-in security features, compliance features, and a well-trained team, you create multiple layers of defense for your agency.

This blog was originally published on March 8, 2022, and has been most recently updated and republished on October 17, 2025.

Posted by Shannon Beck on Tuesday, October 21, 2025 in Data Management & Security

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