Catastrophic Cyber Risks Pose Challenge to Insurance Sector

Business Insurance
06/28/2022

U.S. critical infrastructure remains exposed to cyberattacks with limited insurance protection available, a government report released last week said, but experts differ on how the problem should be addressed.

Some say the insurance industry should do a better job of addressing the threat of systemic risks to critical infrastructure, but others say a government backstop is needed.

A report issued last week by the U.S. Government Accountability Office said there is a limited ability to cover potentially catastrophic losses from systemic cyberattacks on targets such as utilities, financial services and pipelines.

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Private insurers should offer more stable coverage that protects organizations involved with critical infrastructure projects, and by extension everyone else needing it, said Joshua Gold, a shareholder with Anderson Kill P.C. in New York.

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Cyber Insurance Recovery Attorney | Anderson Kill P.C.
Joshua Gold
Shareholder
New York

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