New York regulators question insurance industry over cyber security preparedness

cyber insurance

Insurance industry facing challenges in digital world

Cyber security is becoming a major issue throughout the U.S. and the insurance industry is beginning to feel the pressure to become more prepared to deal with the threats that exist in the digital world. The insurance industry is well attuned to risks, but hackers and other malicious groups represent a risk that is nearly impossible to quantify due to the rapidly changing nature of the Internet and how data is being used and stored. In New York, insurance regulators are beginning to recognize cyber security as a top priority and are working to ensure that the insurance industry is as prepared as it can be.

State regulators look for insight on cyber security

The New York Department of Financial Services has issued several letters to insurance companies throughout the state. These letters seek to acquire information concerning the past three years worth of cyber attacks and how insurers have managed these events. Regulators aim to better understand how the insurance industry has prepared itself to face these attacks and what lengths insurers are going to in order to provide adequate levels of protection.

Insurance Industry - Cyber SecurityInsurance industry represents valuable target for hackers

Regulators hope to identify any shortfalls that may exist in the insurance industry when it comes to the issue of cyber security. New York Superintendent of Financial Services Ben Lawsky notes that insurance companies often protect sensitive information for consumers and businesses alike. As such, these organizations are popular targets for hackers and other malicious groups looking to exploit such information. If the insurance industry is not well prepared to handle the risks posed by cyber attacks, that lack of preparedness could have dire consequences.

Cyber security among fastest growing sectors for insurance industry

Protection against cyber attacks is one of the fastest growing sectors of the insurance industry. Businesses have experienced major losses in the past due to the impact of cyber attacks, thus highlighting the value of such protection. Though the insurance industry is working to offer better levels of protection, it does not necessarily reserve this protection for itself.