Will NYDFS’s Cyber Insurance Framework Set a Precedent for the Cyber Insurance Industry?
As ransomware attacks reach unprecedented numbers and the number of record exposures continues to skyrocket, an increasing number of organizations are at risk of attack—and the cyber insurance industry is taking note.
The FBI’s Internet Crime Report 2020, for example, cites almost 2,500 ransomware incidents reported to the Internet Crime Complaint Center in 2020, amounting to losses exceeding $29.1 million. Other numbers, depending on the source, are significantly higher. A report cited mid-year by NPR, noted as many as 65,000 ransomware attacks in 2020.
The rise in ransomware attacks even prompted the White House to urge U.S. businesses to implement security measures to better protect themselves from attacks. The White House suggested businesses consider adopting defensive security measures similar to those now required of federal agencies and other organizations that do business with the U.S. government.
We are seeing similar new and increasing mandates in other industries as well—e.g., from cyber insurance underwriters—affecting everything from new policies and renewals,…
