U.S. Rep. John Ratcliffe (R-TX) chaired a hearing on Wednesday that examined the possibility of cyber insurance as a risk management strategy for future incidents.
“Cyber risks are rapidly evolving, and cyber insurance has the potential to be an important tool for facilitating improvements in the private sector when it comes to advancing our cyber defense tools and capabilities,” Ratcliffe said.
The hearing, titled the Role of Cyber Insurance in Risk Management, saw stakeholders testify before the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies. The testimony emphasized the potential role that cyber insurance can play in a potential cyber attack as a response plan.
Attendees included Matthew McCabe, senior vice president of network security and data privacy at Marsh FINPRO; Adam W. Hamm, commissioner of the National Association of Insurance Commissioners; Daniel Nutkis, chief executive officer of HITRUST Alliance; and Tom Finan, chief strategy officer of Ark Network Security Solutions.
Ratcliffe noted that cybersecurity insurance has potential value, but cautioned that it played only one component in a multifaceted strategy in cyber defense.
“While there is no ‘silver bullet’ to improving our nation’s cybersecurity posture, today’s hearing certainly confirmed that cyber insurance can indeed be a valuable free-market tool in the ongoing effort to better defend ourselves against cyber risks,” Ratcliffe said.