Trends in cyber insurance claims to watch in 2022

5. Government regulation and security.

New York’s Department of Financial Services formally released a cybersecurity framework for cyber insurance carriers to follow. President Biden signed an executive order to improve national cybersecurity and recently held a cybersecurity meeting to discuss the strategic importance of protecting America’s business interests. Not only do we expect to see more federal regulation in 2022, we also expect to see more public frameworks from government institutions around the world and new laws that will require far greater disclosure of cybersecurity incidents.

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4. The cyber insurance market will continue to harden.

In the first half of 2021, we saw the beginnings of insurance capacity constraints as carriers evaluated how to address cyber risk. Due to the frequency and severity of ransomware attacks, some carriers have started applying coinsurance and sublimits on a widespread basis. The market will likely continue to harden as we enter 2022, and insurance carriers will begin requiring many common cybersecurity controls. Carriers will also require companies to address vulnerabilities…