Cybersecurity: Impact on London Market Insurance
As disruptive technology is at the forefront of discussions across all industries, new challenges are on the horizon, one of which is effective cybersecurity and risk management protocols.
Expanded government regulations and growing cybersecurity threats are two themes that businesses can expect in 2023 and beyond.
Expanded Government Regulations
Following the passage of the Cyber Reporting for Critical Infrastructure Act of 2022 (CIRCIA), critical infrastructure organizations have mandated reporting requirements. Other regulators, such as the DoD, SEC, and FDA are all reworking regulations to tighten cybersecurity controls present in businesses. The inability to adapt to new regulations could leave your organization with lost revenue.
Growing Cybersecurity Threats
Organizations are now tasked with managing both internal and external security threats to implement effective risk management strategies. Endpoint weaknesses, hybrid work schedules, and automated hacking ploys have led businesses to invest in multiple cybersecurity management tools and hone in on vendor relationships.
The Future of Cybersecurity and Risk Management In Insurance
Expanded government regulations and growing cybersecurity threats will require organizations to take a proactive approach to cybersecurity and risk management in 2023. Minimizing financial risks associated with the changing landscape pushes organizations to take out cybersecurity insurance policies.
However, as cybersecurity continues to become a prevalent issue, insurance carriers will begin clamping down on how they insure businesses. Self attestation will no longer be an acceptable form to create premiums and coverage based on. Independent audits backed by accredited standards may very well be on the horizon. Only time will tell how regulators and business owners handle the newfound challenges of cybersecurity and risk management.
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