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US financial services regulator the New York State Department of Financial Services (DFS) has issued specific guidance for Property/Casualty Insurers writing cyber Insurance. Advising covered entities to establish formal strategies for measuring cyber insurance risk, which is directed and approved by it board.
In a move which recognises the increased risk posed by cyber and the continued rise of the damage done by cyber crime. It reinforced the position that insurers and policy holders risked violating OFAC sanctions if they pay ransomware and highlighted that insurers must account for the systemic cyber risk that occur and could ‘swamp’ insurers with massive losses.
The document sets out several approaches insurers should take.
1. Establishing a formal cyber insurance risk strategy.
2. Managing and eliminating exposure to silent cyber.
3. Elevating system risk.
4. Educate Insureds and Insurance Producers.
5. Obtain Cybersecurity Expertise.
6. Require Notice to Law Enforcement
As this is the first regulator to set out it requirements I think its likely other will follow suit.
#cyberrisk #insurance #cyberinsurance #parava #europe #supplychain #cybersecurity #procurement #security #cmmccoe #legalcompliance #legal
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