Insurer cybersecurity went to Washington.
On March 22, North Dakota Insurance Commissioner and NAIC Cybersecurity Task Force chairman Adam Hamm testified before Congress on pressing issues related to cybersecurity in the insurance sector.
The House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies held the hearing, entitled "The Role of Cyber Insurance in Risk Management." The hearing’s purpose was to gather as much information on best practices and effective risk management via the utilization of cyber insurance.
During the hearing, Hamm spoke of the importance of keeping consumer data secure and the creation of a safe cyber insurance market.
"When it comes to regulation, cybersecurity policies are scrutinized just as closely as other insurance products," Hamm said. "We take very seriously our responsibility to ensure the entities we regulate are both adequately protecting customer data and properly underwriting the products they sell."
Hamm further stated that the “expansion of cyber risks and the growth of cybersecurity insurance” could open doors for the insurance sector to pioneer the development of best practices to reduce cyber risks.
"Insurance has a long history of driving best practices and standardization by creating economic incentives through the pricing of products, and the underwriting process can test the risk management techniques and efficacy of a policyholder making a broader range of businesses secure," the insurance commissioner added.
Hamm’s testimony also laid the groundwork for the regulation of cybersecurity policies, as well as reporting requirements for those offering such policies. He also noted that the NAIC, joined by state insurance regulators, is taking initiatives to make sure that insurers have adequate cybersecurity measures and consumers are guaranteed that their insurance information is in good hands.
