From: Captive Insurance Times
In an environment of technological threats, cyber security is moving up the captive agenda, say EY Bermuda’s Daniel Message, Kerr Kennedy and Chris Maiato
In an environment of growing technological threats, it was perhaps only a matter of time before enhanced regulatory oversight emerged for cyber security in the insurance sector. New requirements issued by the New York Department of Financial Services (NYDFS) represent an early version of what is likely to be a new wave of such regulations, with the topic simultaneously coming in to sharper focus for other regulators across the globe. Cyber security is now moving up the agendas of captive owners, as steps are taken to address these emerging issues.
Emerging regulatory oversight
The NYDFS regulations come in response to concerns over the growing number of cyber security events and the corresponding risks currently faced by the financial services industry. They pertain to banks, insurance companies and other financial services institutions regulated by the NYDFS, effective 1 March this year and a subsequent transitional period. Other regulators such as the US Securities and Exchange Commission and those in countries including Singapore, Malaysia, China and Japan have announced cyber security regulations, while others such as the Bank of Ireland have issued guidance (as opposed to requirements).
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