Cyber insurance will be the focus of a new task force launched by the National Association of Insurance Commissioners
The National Association of Insurance Commissioners has created a new task force that will be focused on cyber security. The task force is meant to increase consumer protection, introducing new regulations that target the insurance industry. Insurers collect valuable information from their customers, but new risks are emerging in the digital world that put this information in danger of theft and exploitation. The new task force could help foster further innovation in the world of cyber insurance.
Cyber security is becoming a problematic issue for the insurance industry
Cyber security is becoming a major issue for the insurance industry. Recently, high-profile digital attacks on large companies, such as Sony, have lead to the information of consumers being stolen. Even hospital networks, such as Community Health Systems, have been targeted by malicious groups that seek to exploit this information. Cyber insurance can help companies targeted by these attacks recover, but protecting consumer information is becoming a bigger priority as these attacks become more frequent and sophisticated.
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Some insurers are having trouble offering digital protection
Cyber insurance is a relatively new business, when compared to other forms of coverage being offered by the insurance industry. As such, it has yet to mature to the point where insurers can adequately manage the risks that exist in the digital world. By introducing new regulations, the task force could help insurers develop better protections for consumers, and not just businesses. The task force will also work to protect state departments of insurance and provide them with better abilities to protect the consumer information that they store.
Insurance industry continues to evolve to address new digital risks
The insurance industry has begun to evolve to address new risks that are emerging in the digital world, but these risks are evolving at a rapid pace. Some insurers are having trouble offering coverage that can appropriately manage digital threats. Lacking regulations may be to blame, in some cases, but much of the issue may lie with insurers still learning how to manage risks that they have relatively little experience with.