The Case for a Federal Cyber-Insurance Backstop

[vtqhtr413]

Content source

https://www.darkreading.com/operations/the-case-for-a-federal-cyber-insurance-backstop

Put simply, a federal cyber-insurance backstop would involve the US government stepping in to provide aid (likely at least in part financially) to stabilize the economy in the event of a catastrophic, widespread cyber incident. Under such a framework, legislators could set requirements for private insurers to qualify for federal support.

Holistically constructed, a federal cyber-insurance backstop would transfer remote but potentially catastrophic risks from qualifying insurers (or their policyholders) to the federal government. These would be systemic risks that insurers cannot sustain on their own due to financial stability concerns; however, a federal insurance backstop could ease coverage restrictions by providing reinsurance in the event of a catastrophic loss.

 

[MuzzMelbourne]

Yeah, I can just see how this would work...

Businesses pay exorbitant, mandated no doubt, insurance premium's to listed insurance companies to insure against cyber attacks. Shareholder's are happy. Cost passed-on to customers.

Huge economic crisis due to cyber attack, insurance company and banking sector cry poor, government bails out listed banking sector and insurance companies. Shareholders are happy. Cost passed-on to tax payers.

Cynic? Nup, seen it all before.

The old business maxim, "Nationalise the losses, privatise the profits" is alive and well these days.

Gordon Gecko would be proud of this scheme...