Insurance Bureau of Canada officials are hoping a $145-million commitment by the federal government towards cyber security will help the industry better understand how much a cyber incident could cost.
In the 2019-20 budget document tabled Tuesday, federal Finance Minister Bill Morneau proposed to spend $144.9 million over five years critical cyber systems, including those in the finance, telecommunications, energy and transport sectors.
The industry needs to get a better understanding of how much money could be lost as a result of a cyber security disaster in Canada, suggested Craig Stewart, IBC’s vice president of federal affairs, in an interview Wednesday.
“It is difficult for insurers to underwrite a risk that is poorly understood and difficult for government to create a policy and legislative framework when they don’t understand the risks,” he said. Both government industry have an interest in better defining the problem and the $144.9 million “will go in part to that effort,” Stewart predicted.
The government proposes to start spending the $144.9 in the fiscal year beginning April 1, 2019. At least some of that money would go to the Canadian Centre for…
