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🔒 '''Encryption in transit''' is the practice of cryptographically securing data as it moves between systems, devices, or network endpoints, ensuring that information exchanged cannot be intercepted or read by unauthorized parties during transmission. For insurance organizations — which routinely transmit [[Definition:Policy | policy]] applications, [[Definition:Claims | claims]] documents, medical records, payment instructions, and [[Definition:Reinsurance | reinsurance]] bordereaux between [[Definition:Broker | brokers]], [[Definition:Insurance carrier | carriers]], [[Definition:Third-party administrator (TPA) | third-party administrators]], and regulators — protecting data in motion is as critical as protecting data at rest. Standards like Transport Layer Security (TLS) for web and API traffic, and Secure File Transfer Protocol (SFTP) for batch data exchanges, have become baseline requirements in both traditional insurance operations and modern [[Definition:Insurtech | insurtech]] architectures.

⚙️ When a policyholder submits a claim through a carrier's mobile application, or when an [[Definition:Managing general agent (MGA) | MGA]] transmits a [[Definition:Bordereau | bordereau]] to its capacity provider, encryption in transit wraps the data in a cryptographic envelope using protocols such as TLS 1.2 or 1.3. The sending and receiving systems negotiate a shared session key through a handshake process, and all data flowing between them is encrypted for the duration of the connection. Insurance-specific messaging platforms — including those used for [[Definition:Lloyd's of London | Lloyd's]] market placement, ACORD messaging, and real-time [[Definition:Application programming interface (API) | API]] integrations between [[Definition:Policy administration system (PAS) | policy administration]] and [[Definition:Claims management system | claims management systems]] — rely on these protocols to prevent man-in-the-middle attacks. Organizations typically enforce encryption in transit through network policies that reject unencrypted connections, certificate pinning for mobile applications, and mutual TLS (mTLS) for service-to-service communication within [[Definition:Microservices | microservices]] environments.

🌐 The consequences of failing to encrypt data in transit extend well beyond technical vulnerability. Regulatory frameworks governing insurance operations — from the NAIC's model cybersecurity law in the United States to the European Insurance and Occupational Pensions Authority's (EIOPA) guidelines on ICT security, and Hong Kong's Insurance Authority expectations on data governance — treat unencrypted transmission of sensitive policyholder information as a material control deficiency. For insurers that also underwrite [[Definition:Cyber insurance | cyber liability coverage]], the presence or absence of encryption in transit within a prospective insured's environment is a core element of [[Definition:Underwriting | underwriting]] assessment. As the industry increasingly relies on cloud-native architectures, real-time data sharing via open insurance APIs, and cross-border data flows for global programs, encryption in transit is not merely a technical checkbox — it is integral to the trust architecture on which digital insurance distribution depends.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Encryption at rest]]
* [[Definition:Application programming interface (API)]]
* [[Definition:Cyber insurance]]
* [[Definition:Information security]]
* [[Definition:Data privacy]]
* [[Definition:Cloud computing]]
{{Div col end}}

Definition:Encryption in transit - Revision history

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