New York Department of Financial Services Issues Cyber Insurance Risk Framework (February 2021)
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Introduction
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On February 4, 2021, the New York Department of Financial Services issued its Cyber Insurance Risk Framework to help insurers effectively price and manage cyber insurance risk. In a Circular Letter introducing the Framework, DFS cautioned insurers that failure to accurately price cyber risk can lead to compounded losses that threaten their stability and viability. DFS also expressed concern that insurers may create improper incentives for their clients, who may see paying for cybersecurity insurance as a substitute for an effective cybersecurity infrastructure. The Framework reflects the DFS's continued focus on cybersecurity.
