American Family Insurance has shut down “several business systems” after the insurer said it “detected unusual activity on a portion of its network”.
In an email to Insurance Journal, the Madison, Wisconsin-based insurer said its technology teams discovered the activity last week and took the step of shutting down some systems. Reached today, American Family said there was no update on the situation.
“We recognise that the system outages are impacting customers, agents and employees, and we appreciate their patience and understanding,” the emailed statement said.
“Our investigation into the activity is ongoing and includes internal and external experts. To date, we have not identified any compromises to critical business, customer data processing or storage systems, and several components of our business continue to operate without interruption,” American Family said, adding that it will bring systems back online when the investigation is complete and it is safe to do so.
Currently, the insurer’s website is advising policyholders to call if they need to make a claim. “If you are unable to make a payment, you can do so when the system is back up and you will not be penalised,” the online notice says.
The news comes shortly after American Family – one of the top writers of home and auto insurance in the US – announced an unspecified number of layoffs across its five insurance companies.
Earlier this month, insurance rating agency AM Best reaffirmed the financial strength rating of A (Excellent) for American Family Insurance and its subsidiaries.
