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A Big Client Concern: Data Protection

Posted By Administration, Tuesday, April 18, 2017

Big data is a big deal in insurance. It’s become critical for underwriting and rating. That’s not lost on the National Association of Insurance Commissioners (NAIC). The NAIC recently formed its Big Data Task force to look at what needs to be done to protect data from an insurer’s perspective to that of the regulator.

Charles Angell who is the deputy commissioner and chief actuary of the Alabama Department of Insurance is on the task force. He recently told the 2017 Ratemaking and Product Management Workshop of the Casualty Actuarial Society that the task force wants a clear understanding of the data insurers are collecting and how that data is being collected. That will lead to knowing how insurers and third-party insurance operations are using what they collect.

Another issue. Making sure the data collected complies with state insurance laws and regulations and is not being misused.

It’s equally important that consumers know their data is being collected and how they can control some of the availability of that data and how it relates to the cost of their insurance. “How can consumers alter their risk characteristics if they don’t even know what data is collected? Should there be some kind of disclosure notice [required]?” Angell said.

Lastly, the task force wants to make sure the data is properly used to determine potential risk. That leads to questions as to whether automation — and the vendors that develop it — should be examined like the insurance advisory groups that develop loss costs.

In other words, the data collection issue is quite complex. And Angell and the task force are leaning toward creating a consulting team to assist state regulators with technical reviews. “This consulting team would not be a regulator. It would not be approving or disapproving any statistical models. It would simply advise [an insurance department] on any issues it found with the way a model is constructed,” he said.

And Angell said this process will also benefit insurers because all technical objections will be raised and dealt with in a central forum rather than in a bunch of different jurisdictions.

Source link: Insurance Journal

Tags:  A Big Client Concern: Data Protection  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Security  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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2017’s Biggest Business Fear: Cyber Attacks

Posted By Administration, Tuesday, February 28, 2017

Businesses in the United States are not the only businesses worried about cyber attacks. Growing numbers of attacks worldwide combined with growing populism and political instability around the world have business people in 79 countries chewing their nails.


The Business Continuity Institute (BCI) and British Standards Institution said:


  88% say they are extremely concerned or just concerned about hackers

  A big concern about political upheaval is in the top 10 for the first time ever

  Experts blame the election of Donald Trump for that


BCI Executive Director David Thorp said, “Cyber-attacks and data breaches continue to cost organizations billions of dollars annually, a sum that is only likely to go up with the increasing integration of new pieces of technology into daily operations. Politics too has been a dominant topic this year, certainly more than in the recent past.”


Number-two is threat of a data breach. An unplanned telecom outage is third. New laws and regulations also made their first push into the top-10.


Source link: PropertyCasualty360.com



Tags:  2017’s Biggest Business Fear: Cyber Attacks  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Security  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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Cyber Attackers will be More Cunning in 2017

Posted By Administration, Tuesday, January 17, 2017

Every year cyber attackers and hackers get more sophisticated and bolder. An Aon company Stroz Friedberg said look for 2017 to be even worse than previous years. Its report on the subject is titled 2017 Cybersecurity Predictions and those predictions are dire. 


Ed Stroz — the firm’s co-founder — said, “In 2016 we witnessed everything from cyber attacks influencing public opinion to hacked IoT devices and the introduction of new cyber security regulations. This year we’ll see an intensification of these threats, along with new challenges and a blurring of lines between the actions and responsibilities of the state, markets, businesses and civil society.”


What we saw in 2016 — he added — just scratches the surface. “The flood of fake news and nation state-backed attacks in this past year’s election are just a sign of things to come, as attackers find new ways to seek faster and wider access to data and exploit sensitive information.”


The conclusion is obvious. Cyber attack risk is just part of doing business whether you’re a business or government and finding ways to protect yourself from hacking is critical.


And with that here are some of the Stroz Friedberg predictions:


  Criminals will use more Internet of Things devices to attack infrastructure.


  Data integrity attacks will increase. “Criminals will seek to sow confusion and doubt over the accuracy and reliability of information, impairing decision-making across the private and public sector,” the report predicted.


  Phishing and social engineering attacks will be more targeted and more advanced. These criminals know the human element is the weakest link and easiest access to the proverbial door. This is called social-engineering tactics.


  Red teaming will increase. It is ethical hacking designed to detect system flaws.


  Cyber attacks from nations will continue to be problematic and could end up influencing global and political policy.


“As government, business, and consumers balance rapid innovation in technology with changing cyber threats, every year sees an intensification of existing risks, and many new emerging ones; 2017 will be no different in that respect,” the report added.


Look for governments — like the U.S. under a Trump administration — to take a tougher stance on online attacks from other countries. And with that the firm suggested some things business can do to protect itself:


  Optimize your company’s cyber security posture. Continually assess and prioritize cyber threats and vulnerabilities, and improve incident response (IR) readiness.


  Evaluate insider risk. Ensure your formal program is current.


  Conduct M&A pre-deal cyber due diligence early. Perform alongside compliance and financial due diligence. Assess, protect and leverage intellectual property, and commercially valuable information.


  Consider self-regulation by adopting higher security standards in products and services prior to going to market, even if cost is prohibitive.


Source links: Carrier Management, Insurance Journal



Tags:  Cyber Attackers will be More Cunning in 2017  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Security  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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Cyber Insurance Premiums Rise Significantly

Posted By Administration, Wednesday, September 7, 2016

The cyber insurance market is growing and it’s healthy. Or at least it might be healthy. To start with Fitch Ratings said U.S. insurers took in $998 million in 2015. Breaking that down:


  $483 million is for standalone cyber insurance

  $515 million ties cyber insurance to other types of coverage


These figures come from the National Association of Insurance Commissioners (NAIC). Where Fitch gets involved is in the analysis of the numbers and it says not all is rosy.


Each underwriter’s approach to assessing premiums from cyber risks in package policies will differ, leading to inconsistencies in the data. A significant portion of cyber-related exposures will not be captured [as] several large companies did not report premiums for [bundled] cyber policies in the supplemental filing,” Fitch spokesman James Auden said.


Consistency is critical and Fitch said insurers just aren’t there yet.


There are 120 insurers writing cyber business today. Three insurers have 45% of the cyber insurance business. They are AIG, Chubb and the XL Group. All three are very optimistic about the line’s future. Marsh & McLennan — also deeply involved in the line of insurance — thinks it’s going to jump three to five times higher by 2020.


And again, Fitch and Auden disagree. Industry estimates suggest that the global cyber insurance business could increase to $20 billion by 2020, but the lack of information on cyber insurance is a challenge for insurance companies, policyholders, regulators, and investors to evaluate and price risk. Challenges in isolating cyber related premiums and exposures from other risks within a package policy create limitations in analyzing the supplemental filing as total cyber insurance premiums are likely understated,” he said.


The most standalone coverage was written by XL Group and it hit $113 million. AIG wrote the most package-based coverage. That figure is $194 million — or about 34% of the line’s total market.


Source links: Fed Scoop, Insurance Journal


Tags:  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Insurance Premiums Rise Significantly  Cyber Security  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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Cyber Insurance

Posted By Administration, Tuesday, November 10, 2015

Wells Fargo did a study and found close to half of the businesses in the U.S. that have cyber insurance have used it. The study looked at 100 middle market firms and large corporations and found:


  85% of those responding had cyber and data policies.

  44% have already filed a claim because of a breach.


These payouts — Wells Fargo suggests — are going to result in even higher cyber insurance rates than businesses have been experiencing:


  Rates rose an average of 32% for retailers in 2015.

  Health care companies have seen rates triple.

  For $100 million policies the deductibles have now hit $25 million on average. 


All of this — Wells Fargo continues — is problematic for insurance agents selling cyber insurance. It’s a hard sell because 42% of mid-size corporations looking for that line cannot afford the cost.


And firms are becoming more choosy about who’ll they’ll insure and for how much. To write a policy many are requiring more proof that the company wanting insurance is doing all it can to keep from being compromised. It is being left to agents and brokers to explain what needed shored up before a policy can be written.


Wells Fargo suggests agents and brokers take some steps so carriers know the business they want to write is secure. Here are some tips:


Make sure a data breach response plan is in place:


  35% of companies worry about data leaks and 25% are very concerned about hackers.

  Yet just 10% have a response plan in place.


The data breach plan must be tested:


  Just 10% of firms quizzed with a post-data breach plan in place tested that plan in advance.

  74% report having to revise the plan after a breach or hacking.


Employees must be trained:


  A pitiful 27% of companies do not have an employee awareness training program in place.

  That figure drops to 20% for companies with less than 2,000 employees.


Wells Fargo’s Dena Cusick heads the company’s insurance technology sector. She said, “While companies recognize the need for cyber security and data privacy insurance, purchasing coverage is not a complete solution. Its also important to recognize that other factors, including testing incident response plans, employee awareness training and following established privacy policies, are all critical components of an overall risk management program.”


High rates and troubles accessing insurance aside, insurance guru Robert Gordon of the Property Casualty Insurers Association of America (PCI) says the future is quite bright for the cyber line of insurance. He predicts business will quadruple in the next four years.


“The market is innovating so rapidly in this area and it's a great opportunity for insurers to bring a wealth … of protection when a loss happens, [and to encourage] companies to have the right sorts of standards to protect themselves and to mitigate losses,” he said.


Munich Re’s Gerry Skalka agrees and said currently the premiums run $2.75 billion yearly with 90% of that written in the U.S. He predicts growth to $7.5 billion to $10 billion by 2020-2021.


Source links: Two from Insurance Business America — Link 1 and Link 2


Tags:  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Security  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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Obama to Chinese Leader: Stop Hacking

Posted By Administration, Tuesday, September 29, 2015

President Obama took Chinese hacking of U.S. government institutions and businesses head on. In a meeting last week he told Chinese President Xi Jinping that China must work with the U.S. to stop the carnage.


Obama bluntly said this, has to stop and he told the Chinese leader we have very serious concerns about growing cyber threats to American corporations and American citizens."


The president said the Chinese president has agreed that neither government will conduct or knowingly support the cyber-enabled theft of intellectual property, including trade secrets or other confidential business information for commercial advantage.


The constant hacks coming out of China cast a pall over Xis visit but Obama said he prevailed and in a statement last Friday the White House said the two countries have agreed to a high-level joint dialogue mechanism on fighting cybercrime and related issues.


That means China will provide the U.S. with an official to participate in dialogue with the FBI and U.S. intelligence officials and others involved in the pursuit of cyber criminals. This mechanism will be used to review the timeliness and quality of responses to requests for information and assistance with respect to malicious cyber activity of concern identified by either side. As part of this mechanism, both sides agree to establish a hotline for the escalation of issues that may arise in the course of responding to such requests, the White House news release said.


Both sides will hold their first meeting sometime between now and the end of 2015. And if nothing changes, President Obama said the U.S. is prepared to take action. This is not just a matter of us being mildly upset, but is something that will put significant strains on a bilateral relationship if not resolved, and that we are prepared to take some countervailing actions.


Meanwhile, the Office of Personnel Management who had the personal data of 21.5 million government employees stolen said 5.6 million of them had their fingerprints stolen.


Source links: Fox News and CNBC

Tags:  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Security  Insurance Content  Obama to Chinese Leader: Stop Hacking  Weekly Industry News 

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Cyber Reports: Both Predict More Business

Posted By Administration, Wednesday, September 23, 2015


A new report from Allianz Global Corporate & Specialty says cyber attacks cost the global economy $445 billion annually. And $200 billion of that comes from the worlds biggest economies the United States, China, Japan and Germany with $108 billion of that figure coming from the U.S.


What that means to the insurance industry is more premium dollars and a growing line of insurance. Allianz predicts theyll jump to more than $20 billion in the next 10-years.


The report said, Cyber risk is now a major threat to businesses. Companies increasingly face new exposures, including first-and third party damage, business interruption and regulatory consequences.


Sadly, the report said cyber risk remains an underestimated problem by most businesses.


Allianz spokesman Paul Schiavone said insurers need to adapt to counter the risks. Initially insurers have dealt with data breaches and privacy problems. In the future, look for more claims involving intellectual property theft and extortion via cyber and business interruption. Within the next five to 10 years, [business interruption] will be seen as a key risk and major element of the cyber insurance landscape, he said.


Other results of the report and suggestions for business:


    Businesses need to spot key vulnerable assets and also address areas such as employee vulnerabilities or over-reliance on third parties.


    Businesses should create a cyber security culture and tackle cyber risk using a think tank approachknowledge sharing from different stakeholders.


      Hidden risks can emerge. M&A activity and changes in corporate structures can impact cyber security and the holding of third party data.



    Companies should decide which risks to avoid, accept, control or transfer.


    Cyber coverage must evolve to become both broader and deeper. Such policies should address business interruption and close gaps between traditional coverage and cyber policies.


    Cyber exclusions in property/casualty policies should become more common. But standalone cyber insurance will keep evolving as the main source of comprehensive cover, addressing demand from industries including telecommunications, retail, energy and transport sectors.


In another report Pricewaterhouse Coopers (PwC) said the insurance industry needs to focus on cyber insurance and learn how to reach out to younger people and younger business owners to get them cyber insurance or lose out.


PwC believes because of the increase and intensity of attacks the cyber insurance market is going to jump to $7.5 billion in annual premium. Thats triple what it is today. But to get that business insurers and insurance agents will need to get creative.


Paul Delbridge of PwC said not getting creative and developing and marketing the right products means companies like Google and Apple who Millennials trust will end up with the business.


I can see Google being very creative, said.


The report agrees with Delbridges conclusion and said, If the industry takes too long, there is a risk that a disruptor could move in and corner the market by aggressively cutting prices or offering much more favorable terms.


And again the likely disruptor would be Google or Apple or both.


Source links: Insurance Business America and Carrier Management

Tags:  A New Cybersecurity Agency. Goodbye Passwords?  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Reports: Both Predict More Business  Cyber Security  Do Your Clients Need Cyber Insurance?  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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Cyber and Insurance, is that the direction to go?

Posted By Administration, Tuesday, April 21, 2015

National Association of Insurance Commissioner — and Montana Commissioner of Securities and Insurance — Monica Lindeen said the NAIC’s Cybersecurity (EX) Task Force has adopted a cyber-strategy for insurers.

She said with the recent high-profile breaches, it is obvious risk these days is more significant since more consumer financial and health information is being stored electronically. The NAIC principles are aimed at — from an insurance perspective — making that data more secure.

“These principles will serve as the foundation for protection of sensitive consumer information held by insurers as well as insurance producers and guide regulators who oversee the insurance industry,” Lindeen said.

Titled Principles for Effective Cybersecurity Insurance Regulatory Guidance, the twelve principles direct insurers, producers, and other regulated entities to join forces in identifying risks and adopting practical solutions to protect information entrusted to them.

Click here to see the 12 principles.

But is insurance really the problem? And should we be aiming that direction to solve troubles with cyber-security? From a strictly insurance perspective, it’s hard to argue that direction is a bad thing.

The U.S. cyber-insurance market in 2014 doubled in size from $1 billion to $2 billion.

A report from Bloomberg View says that’s a huge increase, but what many don’t know is those policies may not provide the coverage needed for companies to be truly protected in the long term.

AIG’s new CEO Peter Hancock worries — like the Bloomberg View — there isn’t enough cyber-insurance capacity. Currently insurers are only covering a fraction of the cost of a breach.

“The largest coverage Im aware of is for a bank that has about $400 million in coverage which is very small when you think about it. When you compare it to the amount of capacity thats available for a complex chemical plant, refinery, offshore oil platform, the numbers are much, much higher,” he said.

Hancock used Target as an example. It had insurance but the breach cost the firm $252 million and only $90 million was covered by insurance. The result is a $162 million difference or 64%.

From there the argument says insurance merely solves the consequences. It does not take care of the security issues that have led to so many hackings and breaches.

Here’s what Bloomberg suggests:

  Increased government regulation for disclosure, so vulnerabilities can be analyzed and other organizations can be made aware of their limitations.

  Conducting thorough post-attack audits to fully understand what took place.

  Brokers helping to educate clients on their specific risk profiles, and guiding the implementation of defensive procedures.

A better understanding of cyber-attacks might be in order as well.

Negative publicity lately on the hacks of Anthem, Sony, Target and others lead many of us to believe that hackers are fairly well-funded and sit in front of their computers 24/7. While it’s true that many of them are well-funded, we think their success is because they’re sitting in front of their computers with sweat running down their brow and dig, dig, digging until they’re through the fire wall and into your precious data base.

This is so not true.

Most attacks are successful because an employee clicks on an email that has a bug in it, or the company doesn’t take care of that security patch it needs for a software flaw or the technicians setting up the system do not configure it correctly.

This is the conclusion of two well-funded studies by technology security company Semantic and Verizon. The Verizon report says of the 290 studies it did from 2014, 66% happened because of phishing.

It gets direr than that. The report notes that hackers can send a tainted email to as few as 10 employees of a firm and know that one of them will open it. The success rate for opening is 90%.

A report from Symantec said the same thing. It looked at state-sponsored hackers and found their success if from phishing, too.

By the way, cyber-crime jumped 23% in 2014. And those data breaches cross every line of business.

Experian is a security company. It says just a third of companies have adequate cyber-insurance and the biggest hole of all is in health care. “When combined with new Health Insurance Portability and Accountability Act (HIPAA) data breach compliance rules that require more notification, the healthcare industry is likely to make the most breach headlines within the year,” the Experian report said.

Christine Marciano heads the firm, Cyber Data Risk Managers and she’s anticipating a profitable future. “Companies are starting to become more aware of cyber insurance — that it exists and what it covers. Its going to be about when a [cyber-attack] is going to happen, no longer if. I think my business will continue to grow because organizations will realize the risk is always going to be here, and they should have coverage for it.”

Meanwhile, until changes are made, you — the independent insurance agent — can benefit from the demand. And while you’re at it, make sure you’re protected, too. The PIA Western Alliance has cyber-insurance protection for you. Touch bases with PIA Western Alliance Director of Insurance Lisa Tucker at 888-246-4466, ext. 112.

Or you can reach her via email at lisatucker@piawest.com.


Source links: Three from Insurance Business America — link 1, link 2, link 3 and insurancejournal.com

Tags:  Cyber and Insurance  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Security  Insurance Content  Insurance Industry  Insurance News  is that the direction to go?  Weekly Industry News 

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It’s no surprise cyber attacks are a top national threat

Posted By Administration, Tuesday, March 10, 2015

The list of things that frighten Americans and American business is long, and seems to grow longer by the day. Topping the list now is cyber attacks and cyber security.

All of this as you know has D&O underwriters concerned. A survey by AHT Insurance of 75 underwriters representing 30 different companies said when it comes to writing a policy, 60% of them consider cyber security a major risk.

The other 40% say it is a minor concern.

The results were put into a report titled 2015 State of the D&O Market. And it posed this question to the underwriters. What questions are you asking in 2015 that you didnt ask in 2014?

  Discuss your internal controls and safeguards regarding cyber security and if you insure that on a separate tower.

  Do you currently carry cyber insurance?

  How robust is your information technology security?

  What is the company doing to address its cyber exposure?


Heres one reason D&O writers are concerned. U.S. National Intelligence Director James Clapper recently delivered this message to Congress: Cyber threats to U.S. national and economic security are increasing in frequency, scale, sophistication and severity of impact.

Like we havent noticed?

The danger he said is politically motivated attacks by foreign governments and nationals who are doing reconnaissance and at worst getting access to the nations critical infrastructure systems. Clapper said Russia has set up a cyber command center to carry out cyber attacks. So has China and North Korea.

And then there are the Islamic groups at war with the West.

After giving that information to the Senate Armed Services Committee and scaring most of the members of Congress and the public, Clapper said the U.S. really isnt at a high risk for a crippling event. What well likely see is a number of low to moderate-level attacks from different sources.

And those attacks will be costly to the U.S. government and to U.S. business.

Clapper said right now, The most pervasive threat to the US financial sector is from cyber criminals who were responsible for cyber intrusions in 2014 into JP Morgan, Anthem and other US companies. In future we will probably see cyber operations that change or manipulate electronic information to compromise its integrity instead of simply deleting or disrupting access to it.

If it makes you feel better, Clapper told the committee that the U.S. has its own offensive capabilities.

He and other U.S. Government officials and business experts say we must do all we can to offset the threat. But to do so we need to recognize the biggest problem and source of attacks is the Internet of Things. Almost any technology in your home or business can be a hacking source.

We all know we have to protect our computers, wireless routers and smartphones but what we dont know is hackers can get into our homes and businesses via other technology.

Here are six of them:

Televisions: Newer TVs have small computers inside that access the Internet. Youve heard reports that people can hack into those computers and monitor what youre doing through the televisions webcam. This is a real threat.

Your connected car: We have remote keys, cell phone connections and wireless tire pressure monitoring. Experts say its difficult to get into them but it is with those who are really good possible.

Copy machines: One of the more dangerous and easily accessed technology are the high tech printers and copiers we use. They can be accessed remotely and they often store information about the documents youve placed in them. This is especially serious if your machines are wireless and talk to locations outside of where the copier/printer is located like another city or country.

Medical devices: Implanted medical devices contain information doctors need. They also can make you vulnerable if you are within 15-or-so feet of a hacker.

Toys: Internet capable games connect you with players in other parts of a city or country. Talking dolls that you can program to give certain responses from conversations can also be hacked.

Adult toys: This is a sensitive subject and not everyone has them, but for those that do, sex toys with remote controls are also at risk.


Often we dont know weve been hacked for days, weeks or even months. Sometimes its a year or more says former National Security Agency cyber expert Jasper Graham who now a major player behind the cyber security software company Darktrace.

Ninety-nine percent of the time when were deployed into a network, we find something bad that is already taking place, he said.

Cyber security strategist of Bit9 + Carbon Black said a big problem companies have is an overworked or understaffed or both IT department. Even advanced IT teams still have humans investigating upwards of 30 or 50 alerts a day, and that is after theyve weeded out millions of other potentially harmful events through automated means, he said.

So hunting for threats or risks doesnt happen because IT teams are overwhelmed.


Source links: Computer Weekly, The Hill 1 and The Hill 2, Business Insurance

Tags:  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Security  Insurance Content  Insurance Industry  Insurance News  It’s no surprise cyber-attacks are a top national   Weekly Industry News 

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Cyber Attacks: An Accelerating Crisis & Now the FIO is Involved

Posted By Administration, Tuesday, February 24, 2015

Anthem is slowly but surely contacting the 80-million people whose identities were stolen during its hacking a couple of weeks ago. In the meantime, those whose identities were compromised can go to this website for information: www.anthemfacts.com.

The company is promising two-years of ID theft help to everyone who is impacted.

The problem as you know is growing exponentially. And while larger firms who these days get the most publicity are beefing up security and insurance, smaller companies are not.

Deputy U.S. Treasury Secretary Sarah Bloom Raskin told the Federal Insurance Offices advisory panel the Federal Advisory Committee on Insurance (FACI) the imbalance is troubling. The administration wants FACIs help in fixing the disconnect.

This is what she wants FACI to find out:

  Why are small and medium-sized businesses behind bigger businesses in the purchase of cyber insurance?

  How can the industry make cyber insurance more accessible and beneficial to all business and not just large business?

  Are there ways to beef up cyber security for third-party vendors?

  How can insurance help companies ID their cyber risks and have the right kind of insurance for those risks?

  How can government get everyone to contribute cyber insurance claims data to it so a better model of cyber risk can be crafted?

Among those on the committee John Franchini who is the insurance commissioner of the PIA Western Alliance state New Mexico. He addressed the topic of insurers protecting themselves. His department is pushing insurers to better protect themselves from hacking. Were actually reviewing all the cyber security [insurers] have in place, Franchini said.

Those not up to speed will be fined.

As for the rest of the world, Kaspersky Lab is a cyber security expert and it says one gang the Carbanak gang has stolen over $1 billion from 100 banks and other financial institutions since 2013.

It is that report that got Raskin worrying and is why she approached FACI.

The gang members are from Russia, China, Ukraine and other parts of Europe and theyve hacked into institutions in the China, Europe and the U.S. Each raid Kaspersky Lab says netted about $10 million.

Thats just one gang. There are hundreds of them and theyre getting very, very sophisticated and very, very good and their dare we say? craft.

Whats sad is many companies are switching from the stance of keeping hackers out to finding ways to minimize the damage when they do get into a data base.

Thats one of the reasons President Obama has put together a national summit to try to beef up cooperation between the federal government and private security specialists. The goal is to combat the problem but few like Securonixs Igor Baikalov think its going to work.

The level of collaboration between public and private sectors has to be at a much deeper level to put even a slight dent in this unrelenting wave of successful cyber-attacks, he said.


Source links: Carrier Management, Computer Business Review and PropertyCasualty360.com

Tags:  Cyber Attacks: An Accelerating Crisis & Now the FI  Cyber Breach  Cyber Insurance  Cyber Security  Weekly Industry News 

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