February 20, 2024 at 10:07AM
The cyber insurance industry faces scrutiny due to skyrocketing premiums and complex policy terms. Underwriting processes are under fire as insurers struggle to keep up with rapidly evolving environments and threats. Modernizing data gathering and potential federal assistance programs are proposed to address the challenges faced by the cyber insurance market and prepare for catastrophic cyber events.
Based on the meeting notes, the key takeaways are:
1. The cyber insurance market is facing increased scrutiny due to rising premiums, complicated policy terms, and the need for better value delivery.
2. The underwriting process needs modernization to address evolving and complex applicant environments, with a focus on robust risk analysis, fair pricing, and terms.
3. There is a need to modernize information gathering in cybersecurity insurance underwriting to provide more accurate snapshots of the environment through electronic data sharing.
4. Concerns about the potential impact of a catastrophic cyber event have led to discussions about the need for federal assistance and a federal backstop program to cover the fallout.
5. Efforts from government agencies, such as CISA and the SEC, are being taken to combat cyber risks and improve national cybersecurity.
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