Congress has been urged by Foundation for Defense of Democracies' Nick Leiserson to include a federal cyber insurance backstop upon the renewal of the Terrorism Risk Insurance Act, which is set to lapse in 2027, in a bid to bolster the cyber insurance sector, CyberScoop reports.
Aside from establishing a reinsurance program that would offer government coinsurance above a certain threshold, include a total liability limit, and potential recoupment-based funding that would be activated in catastrophic cyber events, Congress should also mandate data sharing between the cyber insurance industry and the government or an assigned external party, wrote Leiserson, who is senior vice president for policy at the Institute for Security and Technology. "Despite its massive growth over the past 20 years, cyber insurance is not living up to policymakers expectations... Cyber risk pricing remains nascent, and lessons from this market-driven approach have not filtered into broader cyber policy conversations or cybersecurity operational activities," Leiserson added.
Aside from establishing a reinsurance program that would offer government coinsurance above a certain threshold, include a total liability limit, and potential recoupment-based funding that would be activated in catastrophic cyber events, Congress should also mandate data sharing between the cyber insurance industry and the government or an assigned external party, wrote Leiserson, who is senior vice president for policy at the Institute for Security and Technology. "Despite its massive growth over the past 20 years, cyber insurance is not living up to policymakers expectations... Cyber risk pricing remains nascent, and lessons from this market-driven approach have not filtered into broader cyber policy conversations or cybersecurity operational activities," Leiserson added.
