Following insurance giant Anthem's colossal data breach last week, CEO Joseph Swedish's fate may hinge on how he handles its aftermath.
According to the LA Times, Mr. Swedish recently told investors that Anthem and the insurance industry rank last in customer service. Now, his future partially depends on how effectively he can address customers' concerns.
According to the report, Mr. Swedish was credited for promptly alerting top officials at the White House and U.S. Department of Health and Human Services Right upon learning about the breach. Ongoing investigations will determine the extent he is to blame, however.
"If Anthem was negligent or it's something that could have been avoided, that will not bode well for his tenure as CEO," Ana Gupte, a healthcare analyst at Leerink Partners told the LA Times. "If he comes out of it well, it's another feather in his cap."
Since news of the hack, Anthem has been increasingly criticized for failing to encrypt people's Social Security numbers along with the other personal information lifted from its database, according to the report. The investigation will determine whether Anthem took proper security measures to protect clients' information.
In a statement to The Times, Mr. Swedish said Anthem's primary goal is to earn back customer trust and confidence, and to improve its security systems and processes.
Megan Burns, vice president and principal analyst at Forrester Research in Cambridge, Mass., told the LA Times that the breach offers Anthem a chance to establish an improved commitment to customers, despite the unfortunate nature of the circumstances.
One step the insurance company has already taken in that direction is to let customers enroll in two years of free identity-theft protection and credit monitoring, according to the report.