New York State's superintendent of the Department of Financial Services (DFS), Benjamin Lawsky, is going after cybersecurity in the state's major financial companies. He says cyber insurance can play a role:
"'I worry that we're going to have some major cyber event in the financial system that's going to cause us all to shudder,' said Lawsky, who regulates both banks and insurance companies.
Lawsky noted that, while there's a role for policy makers and legislators to address the issue, the public sector also may be able to prod the private sector to take steps to better handle the risk.
'We need to think about ways to incentivize the market participants to do more to protect themselves from attacks,' Lawsky said.
He noted the rising market for cyber attack insurance, still in its relative infancy. That, in turn, could help companies improve their internal systems to fight such breaches, as those efforts could help them secure policies.
Thursday, September 25, 2014
Monday, May 12, 2014
Insurance Companies Struggle to Price Cyberliability Risk
"Insurers have old, tried and true ways to rate the risk of customers for more conventional forms of insurance, like homeowners and professional malpractice, but cybersecurity insurance is both new and increasingly competitive. It creates an uncomfortably risky situation for the insurers themselves. The "data-driven risk management" BitSight is working on, explained by Boyer in a recent webinar, might help insurers to price the risk more accurately, and this will be better for everyone (at least in the big picture)."http://www.zdnet.com/cybersecurity-insurance-may-push-companies-to-better-security-7000029290/
Friday, March 28, 2014
Target and Other Cyber Attacks Drive Demand for Cyber Insurance
"With vulnerability to hacking in stark relief, insurance brokers say sales of cyberinsurance have picked up sharply this year. The interest is coming from a diverse mix of customers, including public schools in Ann Arbor, Mich., which in February acquired $1 million in cyberspecific coverage for the first time, from a unit of Zurich Insurance Group AG ZURN.VX -0.37% .
'You hear in the news of all those things happening, and we just wanted to make sure that our employees would be covered in case of a breach,' said Nancy Hoover, a school-district finance official. The district is adopting new human-resources and payroll software and was concerned its potential risk was increasing, she said. The policy's annual premium is $21,400, and it covers the cost of services to monitor credit-card accounts, among other potential expenses."
'You hear in the news of all those things happening, and we just wanted to make sure that our employees would be covered in case of a breach,' said Nancy Hoover, a school-district finance official. The district is adopting new human-resources and payroll software and was concerned its potential risk was increasing, she said. The policy's annual premium is $21,400, and it covers the cost of services to monitor credit-card accounts, among other potential expenses."
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