The issue of cyber security has become so prominent that the U.S. government is now pushing for international laws that will curb the spread of the so-called “anti-security” movement. This malefic movement has had an impact on the global insurance industry in more than just losses.
With the threat of cyber crime growing, the industry has had to adapt, drafting new defenses and offering more comprehensive coverage. The federal government holds that insurance is simply not enough and is seeking support from other countries to establish laws that would stop cyber crime.
According to Janet Napolitano, the U.S. Secretary of Homeland Security, many nations do not have legal measures that regulate the digital realm. The lack of regulations creates a safe haven for hackers who are, essentially, protected by government oversight.
“There needs to be some sort of legal framework to address these issues,” says Napolitano. “Currently, that does not exist.”
Insurers have been quick to support the notion of international laws regulating cyber crime. The digital world poses several as yet unknown risks that insurers have been having trouble modeling and measuring. As such, the rates for cyber insurance are often either too high or too low and the coverage offered is, at times, lacking considering the risk. New laws will help insurer’s measure risk and draft policies accordingly.
Relatively few nations have shown interest in the proposition, but as the threat of cyber crime continues to grow, many may be looking for a similar solution.