Insurance industry continues to see threats in digital world
Cyber security has become a very big deal for the U.S. government. Federal officials often highlight the risks that exist in the digital world, expressing their concerns that hackers and malicious parties could do irreparable damage to the country in a variety of ways. While these threats can often be over-politicized, the insurance industry is well aware of the risks they represent and has also been working to draw more attention to these risks in recent years.
Federal government to develop new Internet monitoring system
In hopes of raising awareness concerning cyber security and the risks that malicious attacks represent for companies and consumers, the federal government has announced that it will use classified information concerning software vulnerabilities to provide more protection to the private sector. Secretary of Homeland Security Janet Napolitano claims that the government is developing a new system that will monitor Internet traffic and share the information collected through this system with the private sector.
Insurance industry could benefit from new system
What this means for the insurance industry is not yet clear, due to the multi-faceted nature of cyber security. The industry itself has long been attuned to the risks that exist on the Internet and insurers have been taking note of the rise in cyber crime over the past several years. Protection against digital attacks is becoming more common in the insurance industry, especially as large companies begin growing more protective of their digital information. What is clear, however, is that the system being developed by the Department of Homeland Security may help make businesses more secure in the future.
Information to be available to private sector
The system will be designed to work with the National Security Agency and other federal intelligence organizations. The information collected by the system will be provided to Internet service providers and any company that may be subject to an impending cyber attack. Such a system may be a boon for the insurance industry as it could increase the attention that cyber insurance receives and help highlight the benefits that such coverage could offer.