Cyber Insurance Backstop Urged in Terror Law Renewals
A new report released Tuesday recommends that Congress tie the creation of a federal cyber insurance backstop to the renewal of an expiring terrorism insurance program. The Cyber Insurance Backstop Urged would aim to strengthen a lagging cyber insurance industry that experts say is not evolving quickly enough to meet growing threats.
The report suggests using the upcoming reauthorization process of the terrorism risk insurance law as a legislative vehicle to introduce federal support for cyber coverage. By doing so, lawmakers could address industry gaps while leveraging existing policy frameworks. The Cyber Insurance Backstop Urged would provide added resilience to insurers and incentivize broader participation in the market.
In theory, cyber insurance offers a valuable safeguard for organizations facing digital threats. However, without stronger government support, the market may struggle to keep pace with escalating cyber risks.
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