The Global Federation of Insurance Associations (GFIA) has provided its feedback to the Organisation for Economic Cooperation and Development (OECD) regarding its next steps on cyber issues.
According to the GFIA, the cyber insurance market is an important resiliency tool with many ancillary benefits. Each year, the market continues to grow responsibly as insurers innovate and address consumer needs and market demands.
The federation outlined several challenges to the cyber market’s growth, such as educational and awareness gaps, a risk landscape that is continually evolving and a need for more data. It suggested that the OECD Insurance and Private Pensions Committee (IPPC) should consider reviewing the broader cybersecurity landscape to determine how policy and regulation can support open market penetration through greater cyber risk awareness and sharing of data and information.
The GFIA also noted the OECD’s observation that there is international confusion regarding the insurability of fines and penalties, and encouraged the international organisation to clarify this issue in order to benefit consumer and insurer contract certainty.
Finally, a questionnaire regarding how legislation and regulation may affect bringing products to market was put forward by the GFIA, with the following as potential questions:
- Have regulatory or supervisory requirements or guidance that outline specific security measures had an effect on the insurance market? If yes, please describe the impact.
- How do governmental authorities consider the effect of legislation and regulation on cyber markets? Do you conduct a cost/benefit analysis? Or consult with industry?
- Are there any current or planned legislative, regulatory or supervisory requirements (imposed by the insurance supervisor or other authority) that alleviate procedural hurdles for bringing cyber insurance products to market?
- Do governments support data/information sharing? If so, what policies and practices do they employ to do so?