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One wonders the effects on D&O insurance and pricing when U.S and EU cyber regulations take effect? Will the changes be great enough to affect change in D&O policy pricing and coverage? As cyber risks are one of the top 5 risks for boards of directors and their organizations, and the biggest non-financial risk they face.
We have seen the roller coaster that is cyber insurance, with increases in premiums, reduced coverage and exclusion clauses. Now add to this increased cyber regulation pushing cyber risk into board rooms and onto financial statements, regulatory reporting and increased legal and compliance risk. Transferring cyber risk left of bang, away from its traditional home when a cyber incident takes place.
How will D&O insurers price in cyber legal and compliance risk, fines and corporate actions; as cyber insurers already find it difficult to economically underwrite cyber risk with the data that they have. One wonders the effect on D&O insurance, and how boards will react if, as it appears, the liability for cybersecurity risk management compliance is placed at their feet?
Ted Dziekanowski Celso De Azevedo FCIArb Stephen Pitt-Walker, JD, FGIA Jamie Foster Rachel V. Rose, JD, MBA
#cybersecurity #cyberriskmanagement #cyberregulation #directorsandofficers
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