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Blog: Improving Cyber Insurance Practice Should Be a Company s Priority | Cooley LLP

To embed, copy and paste the code into your website or blog: The New York State Department of Financial Services recently issued guidance for New York-regulated property and casualty insurers to effectively manage the cyber insurance risk present in their insurance portfolio. The DFS’ guidance signals an effort to reduce overall volatility in the cyber insurance market, which has been compounded by the recent proliferation of cyberattacks and by insurers’ widely varying approaches to measuring each policyholder’s cyber risk profile. Although the DFS’ Cyber Insurance Risk Framework applies primarily to New York-regulated property and casualty insurers that write cyber insurance, the framework cautions that insurers that do not write cyber insurance nevertheless should evaluate their potential exposure to “silent risk” in their non-cyber insurance policies. Further, as the DFS has taken the lead in recent years among insurance regulators on cybersecurity issues, the frame

Alert: Improving Cyber Insurance Practice Should Be a Company s Priority | Cooley LLP

New York Regulator Issues Guidance for Insurers Writing Cyber Policies in the State

New York Regulator Issues Guidance for Insurers Writing Cyber Policies in the State The New York State Department of Financial Services (DFS) has issued new guidance spelling out best practices for New York-regulated property/casualty insurers that write cyber insurance. This serves as the first guidance the regulator has issued on cyber insurance in particular. “Cybersecurity is the biggest risk for government and industry, bar none,” said DFS Superintendent Linda Lacewell in a press release issued by her office. “Cyber insurance is critical to managing and reducing the extraordinary risk we face from cyber intrusions. After extensive dialogue with industry and experts, we are issuing guidance to foster the growth of a robust cyber insurance market that can effectively help protect us against the growing cyber threats we face.”

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