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Good IT and engineering staff is a lot more expensive than even a fine for 10% of your annual revenue. Hiring a single good security engineer might cost 400k or more.

Good luck getting your insurance company that pays $100k to senior engineers to do that.

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That is definitely a key problem. Why pay for even one security professional when the consequences are just a few grand in credit monitoring for your customers?

I applied for a programming job with an insurance company once and then the first screening test involved interpreting flowcharts, looked like they were photocopied from a 1970s textbook. I decided then and there it wasn't worth it.

>$100k to senior engineers

Could be half that and no technical screening whatsoever.

Most technical operations are outsourced. They even have a separate company in india for obvious cost savings reasons.

Anthem specifically? Maybe, but insurance and other mundane companies in general hire Americans for IT jobs, only in places like Indiana, upstate NY, or the southeastern US. Often working with people who are in, say, New Delhi, but not being replaced by them.

Outsourcing frequently means outsourcing to people in the US who are paid enough less to be a logical option.

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