Category Archives: Cyber Risk

NY Dept. of Financial Services Requests Detailed Cyber Security Reports From Insurers

Cyber security is clearly one of the highest priorities — if not the top concern — for regulators in 2015. Late last month, the New York Department of Financial Services (DFS) sent more than 160 licensed insurers a New York Insurance Law Section 308 Letter seeking a detailed report regarding their cyber security practices and procedures. The Section 308 Letter — to which there is now less than three weeks to respond — also provides greater insight into the scope of cyber security examinations that…

Continue Reading....

SEC, FINRA and the U.S. Senate Prepare for Cyberattacks in 2015

Two major government agencies have issued reports addressing security of brokerage and advisory firms, and two U.S. Senators have declared their intention to expand cyber-security laws into automobiles.  In February, the SEC released two major publications (here and here) regarding risks for brokerage and advisory firms, as well as adjusters.  The Financial Industry Regulation Authority (FINRA), a private corporation managed by financial industry insiders and billed as the self-appointed “regulator” for NYSE and NASDAQ, has issued a report to assist broker-dealer firms with…

Continue Reading....

Third Circuit Reviews FTC’s Authority To Enforce An “Unreasonable Failure” To Protect Against A Cyber Attack

Today, the Third Circuit heard oral argument in a case that may have a profound impact on the Federal Trade Commission’s enforcement authority over corporate cybersecurity.  The question presented to the Court of Appeals is whether the FTC can pursue an enforcement action against a company under Section 5 of the FTC Act if the FTC believes that a cyber-hack occurred due to the company’s “unreasonable failure” to protect consumer data. The FTC alleges that Wyndham Worldwide did not “employ reasonable and appropriate measures to…

Continue Reading....

ACE Group and The Institutes Launch Dedicated Cyber Risk Programs

This week, two major industry players announced the launch of dedicated cyber risk programs. ACE Group, one of the world’s largest multiline property and casualty insurers, announced the launch of its new dedicated cyber risk business unit in response to internal research showing that cyber risk is a “top three” emerging issue among European risk managers.  ACE first established its global cyber practice in 2014, and is seeking to strengthen its leadership in this new risk area with the addition of full-time dedicated cyber underwriting…

Continue Reading....