The insurance industry has the unique opportunity to build the cybersecurity landscape. Congresses’ inability to pass and implement cybersecurity policy has opened the door for the insurance industry to “move the needle,” reports US Treasury Deputy Secretary Sarah Bloom Raskin.
Brokers have already taken the first step by identifying business practices that bolster cybersecurity and lower premium rates. Business practices such as implementing cyber-incident response plans, evaluating subcontractors and supplier’s adherence to companywide privacy requirements, and frequent upkeep of software patching and other cyber hygiene practices all contribute to lowering companies overall cybersecurity policy.
Peter Beshar, cyber compliance expert of Council member firm Marsh & McLennan Companies, believes, “cyber insurance has the potential to create the right incentives that drive economic behavior across millions of people in the marketplace.”