In 2010, Blue Cross and Blue Shield of Tennessee identified 998,422 current and former members as being at risk for identity theft after 57 hard drives were stolen six months prior. The data breach cost the regional company $7 million, while the plan's employees and vendors spent more than 114,000 hours of labor reviewing back-up data and notifying affected members.
“Depending on the degree of data loss, an insurer could go out of business if it doesn’t have customer contracts and policies backed up somewhere on the premises,” Gytis Barzdukas, product management director at Mozy, a data security service provider, told Insurance Networking News.
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