The “vital role” of re/insurance was highlighted by industry leaders in a recent series of cybersecurity discussions at the White House, which saw President Biden, members of his cabinet and national security team, and private sector and education leaders convene to confront the growing issue of cyber risk.
During the closed sessions, President Biden is reported to have said that the federal government “can’t meet this challenge alone,” as experts examined the best methods of promoting cyber resilience and deterrence.
The consultation came on the back of decades of exponential growth in global cyber activity and connectivity, and at a time when much of the US economy is rooted in electronic mediums that are vulnerable to increasingly sophisticated, malicious cyber attacks.
Incidents of this nature affect the economic security of businesses and individuals in every part of the nation, and experts concluded that a nation-wide collaborative effort is therefore required to make solid progress toward de-escalating and deterring these threats.
Present on one of the White House panels was Vantage CEO Greg Hendrick, who argued that sharing data in a consistent, organised way would be key to gaining valuable insight into the cyber threat to help mitigate and avoid risks.
“The insurance industry can play a vital role by bringing a more risk-based approach to providing coverage and pricing of cyber insurance,” Hendrick remarked following the discussions.
“We need to be prepared and mitigate what has yet to be seen; a true catastrophic scenario where an attack is able to impact thousands of companies. While the federal government is prioritizing and elevating cybersecurity like never before, the private sector should be taking the same approach. Turning all the stones over and working together to help solve this complex, growing international threat is undoubtedly the best way forward.”
Participating on the same panel, Travelers Chairman and CEO Alan Schnitzer emphasised his company’s commitment to public sector collaboration at the preparation, prevention, mitigation and recovery stages to meet the challenge of cyber risk.
“Cybersecurity is one of the most pressing issues of our time, and we applaud President Biden for bringing experts and industry leaders together to address this growing threat,” Schnitzer stated.
“At the White House, I highlighted the critical role that the insurance industry plays in strengthening America’s cybersecurity. Insurers help organizations manage cyber risk efficiently and effectively, including by conducting cyber risk assessments, advising on hardening cyber defenses and providing ongoing monitoring of cyber vulnerability,” he explained.
“After a breach has occurred, insurers provide technical expertise and financial support to facilitate recovery. Working together, the industry can also identify and share trends in the cyber risk environment and promote the adoption of cybersecurity best practices.”
Resilience CEO Vishaal Hariprasad also highlighted the re/insurance industry’s unique position in the fight against ransomware.
If our clients get hit, the insurance pays that loss. Our client’s cyber risk is our cyber risk,” he noted. “Simply put, Resilience believes that placing capital at risk without requiring action on behalf of the insured is a kind of moral hazard.”
For a final view from the White House meetings Coalition Co-founder and CEO Joshua Motta assrted that the cyber insurance industry can play a “fundamental role” in increasing cybersecurity hygiene at scale and offering a “critical lifeline” to companies targeted by bad actors.
“Cyber incidents are bringing all kinds of organizations to a grinding halt from large corporations to local school districts and doctor’s offices. With the help of cyber insurance these organizations can get back to serving their communities quickly, and yet a significant majority are uninsured or underinsured,” Motta stated.
