Concerned about pandemic-related extra cyber activity, the rise in ransomware and recent cyber-espionage campaigns, the New York State Department of Financial Services (DFS) issued a cyber-insurance risk framework on 4 February 2021.
After describing the risks for insurers and concluding that insurers play a critical role in mitigating and reducing the risks of cyber-crime, the Framework recommends the following approach by insurers proportionate to their risks:
- Establish a formal cyber-insurance risks strategy;
- Manage and eliminate exposure to silent cyber-insurance risk;
- Evaluate systemic risk;
- Rigorously measure insured risks;
- Educate insureds and insurance producers;
- Obtain cyber security expertise; and
- Require notice to law enforcement.
Every insurer should consider the detailed advice given in the Framework.
The link can be found here.