The evolving privacy regulation environment is likely to have reverberations for the cyber insurance space, especially as one of the strictest privacy laws in the United States is just around the corner.
One cyber expert says the California Consumer Privacy Act (CCPA) will have “a big impact” on this line of business.
“If the history of other professional lines of business is a judge, more regulations generally equal more risk and thus a bigger need for insurance,” said Michael Palotay, chief underwriting officer for Tokio Marine HCC‘s cyber and professional lines group. “I think that in the near future, cyber insurers will be much stricter about getting into the details about how our applicants are confirming they are in compliance [and] how they know they’re in compliance.”
Notably, the law outlines some stiff penalties for businesses that violate requirements – penalty thresholds that according to PwC, could expose large California-based businesses to substantial risk. Intentional violations of the CCPA can result in civil penalties that reach up to $7,500 for each…
