Re-Focusing Cyber Insurance with Security Validation
Nov 10, 2022
The rise in the costs of data breaches, ransomware, and other cyber attacks leads to rising cyber insurance premiums and more limited cyber insurance coverage. This cyber insurance situation increases risks for organizations struggling to find coverage or facing steep increases. Some Akin Gump Strauss Hauer & Feld LLP's law firm clients, for example, reported a three-fold increase in insurance rates, and carriers are making "a huge pullback" on coverage limits in the past two years. Their cybersecurity practice co-head, Michelle Reed, adds, "The reduced coverage amount can no longer shield policyholders from cyber losses. A $10 million policy can end up with a $150,000 limit on cyber frauds." The cyber-insurance situation is so concerning that the U.S. Treasury Department recently issued a request for public input on a potential federal cyber-insurance response program. This request is in addition to the assessment led conjointly by the Federal Insura...