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U.S. Prods Insurers to Develop Cyber Products

Speaking at the Texas Bankers Association's cybersecurity conference, U.S. Treasury Deputy Secretary Sarah Bloom Raskin urged banks to consider purchasing cyber risk insurance to protect themselves against the financial fallout from the growing threat of cyber-attacks...
December 11, 2014

Speaking at the Texas Bankers Association's cybersecurity conference, U.S. Treasury Deputy Secretary Sarah Bloom Raskin urged banks to consider purchasing cyber risk insurance to protect themselves against the financial fallout from the growing threat of cyber-attacks. While cyber insurance will not stop hackers, it can help bankers improve their broader cyber controls, said Raskin. She said more than 50 insurers now offer some form of cyber risk insurance, and the Treasury is encouraging companies to develop insurance products to help firms improve their overall cyber protection. "Ideally, we can imagine the growth of the cyber insurance market as a mechanism that bolsters cyber hygiene for banks across the board," she said.

Marsh & McLennan Cos. says the U.S. cyber insurance market was worth about $1 billion in gross domestic written premiums in 2013 and could reach $2 billion this year.

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