The Risk and Insurance Management Society Inc. said Monday it had sent a comment letter to the Federal Insurance Office supporting the rulemaking of a federal backstop for large-scale catastrophic cyber incidents affecting infrastructure.
The letter, dated Nov. 14, says the organization’s members “overwhelmingly support a federal cyber insurance backstop.”
“Risk professionals would likely support a well-crafted federal cyber insurance backstop,” RIMS said in its Monday statement but noted questions about scope and controls, and whether any federal cyber insurance response should be included in the Terrorism Risk Insurance Program (TRIP) or conducted independently.
RIMS CEO Gary A. LaBranche said in the statement that the group “looks forward to working with federal policymakers to successfully develop a solution.”;
“RIMS and its members have a strong interest in addressing catastrophic cyber incidents affecting critical infrastructure due to the direct and indirect effects on member companies,” the organization wrote in its letter.
RIMS said government support is needed for a cyber coverage market struggling to meet policyholder needs, noting that while 91% of organizations responding to a recent RIMS survey reported purchasing cyber insurance and 53% of those organizations purchased limits over $10 million, “many respondents were unable to obtain desired limits in the private insurance market, demonstrating that the private market does not provide desired cyber insurance coverage.”
Data from the survey showed that 73% of respondents who purchased limits below $10 million would have purchased limits above $10 million if they were available at a reasonable premium.