Cyber Insurance: Action Needed to Assess Potential Federal Response to Catastrophic Attacks

Cyber insurance can help with common attacks such as data breaches and ransomeware.

According to GAO, the Department of the Treasury’s Federal Insurance Office (FIO) and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) both have taken steps to understand the financial implications of growing cybersecurity risks. However, they have not assessed the extent to which risks to critical infrastructure from catastrophic cyber incidents and potential financial exposures warrant a federal insurance response. CISA is the primary risk advisor on critical infrastructure and FIO the federal monitor of the insurance sector. Accordingly, they are well-positioned to jointly perform such an assessment. Doing so and reporting the results to Congress can inform deliberations on whether a federal insurance response is warranted.

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