FOR IMMEDIATE RELEASE
Insurance Highlighted at Congressional Hearing on Cyber
NAIC's cyber chair testifies on emerging challenges on cyber insurance issues
WASHINGTON, D.C. (March 22, 2016) — North Dakota Insurance Commissioner Adam Hamm testified before Congress today on known and emerging issues impacting cybersecurity in the insurance sector. Testifying on behalf of the National Association of Insurance Commissioners (NAIC), Hamm, who chairs the NAIC Cybersecurity Task Force, spoke about the importance of keeping consumer data protected as well as the development of a strong cyber insurance market.
"When it comes to regulation, cybersecurity policies are scrutinized just as closely as other insurance products," Hamm said in his testimony. "We take very seriously our responsibility to ensure the entities we regulate are both adequately protecting customer data and properly underwriting the products they sell."
The hearing, titled "The Role of Cyber Insurance in Risk Management" was held by the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection and Security Technologies. The purpose of the hearing was to gather information on best practices and effective risk management through the use of cyber insurance.
"The expansion of cyber risks and the growth of the cybersecurity insurance are a tremendous opportunity for the insurance sector to lead the development of risk-reducing best practices and cyber-hygiene across our national infrastructure," Hamm said. "Insurance has a long history of driving best practices and standardization by creating economic incentives through the pricing of products, and the underwriting process can test the risk management techniques and efficacy of a policyholder making a broader range of businesses secure."
Read Hamm's submitted testimony.
More information on the NAIC's efforts on cybersecurity and insurance is available on the NAIC website.