Philadelphia and Erie Insurance Recover from Network Outages Amid Cybersecurity Threats

Philadelphia Insurance Companies experienced a network outage starting June 9, which impacted phone, email, and online application systems. The company proactively disconnected its systems to contain a suspicious activity threat but clarified that no ransomware attack occurred, nor were systems encrypted. Philadelphia Insurance continues to investigate potential data access and will notify affected parties if customer information was compromised.

Separately, Erie Insurance faced a similar network outage beginning June 7 and is in the process of restoring business operations. Key systems and customer online access have been safely reconnected, with no evidence of ransomware or ongoing threat activity identified. Erie Insurance is conducting an investigation to determine if any data has been affected due to this security incident.

These incidents highlight the growing cybersecurity challenges within the insurance sector, emphasizing the importance of rapid threat containment and transparent communication with partners and customers. Both insurers have focused on containment strategies and maintaining operational continuity while investigating potential data exposure.

Philadelphia Insurance Companies, a member of the Tokio Marine Group, provides commercial property/casualty and professional liability coverages. The sector is advised to remain vigilant against sophisticated cyber threats, such as those linked to hacking groups like Scattered Spider, which target critical infrastructure in risk management and insurance operations.

This series of network disruptions underscores the need for insurers to enhance cybersecurity defenses, ensure compliance with data breach notification standards, and strengthen incident response protocols to mitigate operational and reputational risks associated with cyber events.