Ratcliffe Hearing Reveals Potential Role of Cyber Insurance in Combatting Cyber Threats
Press Release
Rep. John Ratcliffe (R-Texas) chaired a subcommittee hearing today which examined the potential for cyber insurance to be used to drive companies of all sizes to improve their resiliency against cyber-attacks and develop a more effective risk management strategy.
"Cyber risks are rapidly evolving, and cyber insurance has the potential to be an important tool for facilitating improvements in the private sector when it comes to advancing our cyber defense tools and capabilities," Ratcliffe said.
In the hearing, titled "The Role of Cyber Insurance in Risk Management," stakeholders testified before the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies.
Witnesses in the hearing included: Senior Vice President of Network Security and Data Privacy, Marsh FINPRO, Matthew McCabe; National Association of Insurance Commissioners, Commissioner Adam W. Hamm; Chief Executive Officer of HITRUST Alliance, Daniel Nutkis; and Chief Strategy Officer of Ark Network Security Solutions, Tom Finan.
The testimony emphasized the potential role that the cyber insurance industry can play in encouraging preventative cybersecurity measures in return for better coverage.
"Cyber insurance has evolved into a product that serves as a key touchpoint for an organization to assess its cyber practices and coordinate its incident response plan to cyber incidents," witness Matthew McCabe said.
Ratcliffe agreed with witnesses about the valuable role cybersecurity insurance can play in helping to strengthen our nation's cyber defenses, and he also recognized that this element represents only one component of the multifaceted approach necessary to being prepared to manage cyber risks.
"Just as the process of obtaining home insurance can incentivize homeowners to invest in strong locks, smoke detectors and security alarms, the same could be true for companies seeking to obtain cyber insurance," Ratcliffe said.
"While there is no "silver bullet' to improving our nation's cybersecurity posture, today's hearing certainly confirmed that cyber insurance can indeed be a valuable free-market tool in the ongoing effort to better defend ourselves against cyber risks."
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