Cyberinsurance Backstop: Can the Industry Survive Without One?
SecurityWeek
SecurityWeek
Alex Iftimie spoke to SecurityWeek about the cyberinsurance industry lobbying for a government backstop.
“There is precedent for creating a cyberinsurance backstop in the U.S. with the Terrorism Risk Insurance Program, which helped stabilize the insurance market post-9/11 and ensure that organizations could continue to find affordable terrorism risk insurance,” Alex said.
He added that the possible effect of introducing a cyberinsurance backstop isn’t yet understood and requires further study.
“The key question is whether such a backstop would help reduce cyberinsurance costs and promote cyber policies that offer more comprehensive coverage to consumers,” he said. “We’ve seen some cyberinsurers cut or limit coverage for state-sponsored attacks as well as for certain widespread cyber events, which could result in gaps in coverage in the event of a catastrophic national cyber incident, precisely when insurance is most needed.”
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