Cybersecurity is an issue of growing importance for insurers as well as society in general. Insurers encounter cybersecurity issues in a variety of ways. Like all members of the interconnected business community, insurers are potential targets as they hold consumer personal information. Because of this, insurers have an obligation to take steps to protect that information as well as to play a role in the development of how society responds to the growing exposure to cyber risk by insuring.
The economic vitality and national security of the United States depends on a stable, safe, and resilient cyberspace. Individuals and business rely on a vast and interconnected array of networks for power, communications, financial services, transportation, and health, in addition to the provision of government services. Almost no aspect of 21st century life is not directly affected or threatened by cyber criminals and terrorists.
The 114th Congress passed legislation incentivizing the sharing of cyber-threat information between the private sector and the federal government. The main provision in the bill, called the Cybersecurity Information Sharing Act (CISA), provides protections from liability, non-waiver of privilege, and protections from Freedom of Information Act disclosure to encourage companies voluntarily to share information—specifically, information about “cyber threat indicators” and “defensive measures”—with the federal government, state and local governments, and other companies and private entities. To qualify for these protections the information shared must meet strict requirements such as the removal of personal information.
NAMIC supports federal activity that would help improve the nation’s ability to withstand cyber-attacks through threat information-sharing. Any information sharing requirements should not be overly burdensome and any security standards must be technologically neutral and based on outcomes.
October 26, 2020 The BuildStrong Coalition hosted a webinar Oct. 23 to educate stakeholders about ways that the use of modern building codes can increase their chances of receiving funds through the Federal Emergency Management Agency ’s Building Resilient... Read more
October 26, 2020 A coalition of fair housing advocates has filed a federal lawsuit against the Department of Housing and Urban Development over the 2020 revision to the 2013 HUD disparate impact rules... Read more
October 26, 2020 The U.S. Securities and Exchange Commission issued a no-action letter Oct. 9 regarding the nature of the related mutual holding company membership interests. An SEC no-action letter is not permission, but rather an expression that the Division... Read more
In 2014, the NAIC formed a Cybersecurity Task Force to undertake an ambitious agenda of work products, following the disclosure of a massive security breach at the health insurer Anthem. The Task Force developed a set of regulatory principles, proposed a “Bill of Rights” for consumers, and set out to develop a model law addressing data security issues for insurers and other regulated entities. The Task Force also enhanced financial exam standards to focus on cybersecurity issues and developed a supplement to the annual statement to collect information on insurers’ writing of cybersecurity insurance.
The NAIC Cybersecurity Task Force development of both data security standards and security breach protocol measures has involved addressing many issues including: 1) the breadth of definitions regarding personal information and cybersecurity breach event; 2) the inclusion of a harm trigger to determine when notice to regulators and consumers is required; and 3) the obligation to ensure proper measures and practices of third-party service providers.
NAMIC has engaged in every initiative undertaken by the Cybersecurity Task Force by continually stressing the need for regulatory measures to be risk-based and scalable to match the needs and abilities of entities of varying size and complexity, and to be workable from a compliance perspective.
October 23, 2020 The NAIC announced a tentative schedule for the next virtual meeting, being held on Dec 3-4 and Dec 7-9 with a break over the weekend. As the calendar turns toward December, the NAIC will be meeting over the next several weeks to bring business to a... Read more
October 22, 2020 The NAIC Group Capital Calculation (E) Working Group has released for comment final proposals for changes to the NAIC Insurance Holding Company System Regulatory... Read more
October 22, 2020 During the Sept. 17 meeting of the Special (EX) Committee on Race and Insurance, NAIC President Ray Farmer of South Carolina announced the leadership and support staff for each of the committee’s five identified workstreams and indicated... Read more
October 22, 2020 NAMIC submitted a comment letter (Att. 6 – Exam Letter) to the Risk-Focused Surveillance (E) Working Group and the Own Risk and Solvency Assessment Implementation (E) Subgroup on their joint proposal to add new guidance for group-wide supervision... Read more
October 22, 2020 The NAIC Innovation and Technology (EX) Task Force continues to move forward on revising the NAIC Unfair Trade Practices Model Act with the goal of modernizing anti-rebating barriers particularly in regard to value-added services that provide for loss... Read more
Understanding the Evolving Cybersecurity Standards Landscape for Insurers
The amazing benefits of a technologically advanced and interconnected society have not been attained without the price of sobering exposure to substantial and even potentially catastrophic harm. The headlines regularly convey the latest security breaches, typically involving increasing volumes of a variety of information being accessed or stolen, affecting a larger number of individuals as potential victims. Unsurprisingly, the insurance industry, given its role in supporting risk management by businesses and individuals, has not been immune in...
October 16, 2020 The Delaware Department of Insurance has revised and updated Universally Applicable Bulletin No. 5, which addresses compliance with Delaware’s enacted version of the National Association of Insurance Commissioners’ Insurance Data Security Act... Read more
October 9, 2020 The Delaware Department of Insurance has revised and updated Universally Applicable Bulletin No. 5, which addresses compliance with Delaware’s enacted version of the National Association of Insurance Commissioners’ insurance data... Read more
August 17, 2020 The NAIC Privacy Protections (D) Working Group met virtually on July 30 as part of the 2020 Summer National Meeting. Its agenda focused in on returning to the topic rather than focusing on substantive concepts and provisions. Most of the meeting was... Read more
July 20, 2020 Rep. Al Green, D-Texas, is proposing an amendment to the National Defense Authorization Act that would require the Government Accountability Office to conduct a study analyzing availability of insurance coverage in the U.S. for... Read more
June 19, 2020 Enacted HB 614 substantially adopts the provisions of NAIC’s Insurance Data Security model law. Read more