Two Pennsylvania-based property and casualty insurers are responding to separate network disruptions that have limited policyholder access to digital services and communication lines.
Philadelphia Insurance Companies, headquartered in Bala Cynwyd, confirmed a system outage on June 11, affecting its phone, email, and online application access. The only online functionality available was a message on the company’s website confirming the outage. Despite the disruption, policyholders could still file claims via phone.
This development comes shortly after Erie Insurance disclosed a network outage that began on June 7. According to a statement posted on June 11, Erie’s information security team detected unusual activity and took steps to isolate and protect its systems. The insurer is working with law enforcement and third-party cybersecurity specialists to determine the nature and scope of the incident.
Although Erie has partially restored access through its local agents and phone lines, the company has warned customers to avoid clicking links from unknown sources or sharing personal information via phone or email. Customers are advised to contact their agent directly for policy-related questions.
Both insurers have stated that efforts are ongoing to resolve the outages and restore normal operations. Neither company has linked the two incidents or disclosed whether the disruptions were the result of a cybersecurity breach.
Philadelphia Insurance is part of Japan-based Tokio Marine Holdings Inc., which recently reported increased net income for fiscal year 2024. While the group saw overall gains, profits from North American operations, including Philadelphia Insurance, declined. Factors contributing to the decrease included higher losses from natural catastrophes, reduced releases of prior-year loss reserves, and loan-related provisions. These were partially offset by underwriting results and investment income.
The recent outages at two regional insurers raise operational concerns about service continuity and data protection in the insurance sector. The events follow an increasing number of cyber-related incidents affecting firms across industries, though both companies have so far kept details of the cause internal.
How should insurers respond to digital disruptions to maintain policyholder trust and service access? Leave your thoughts in the comments.