Obligations Of Insurers Related To Cybersecurity And Outsourcing

The Financial Sector Conduct Authority (FSCA) and Prudential Authority (PA) have announced that Joint Standard 1 of 2024 (Outsourcing by Insurers) and Joint Standard 2 of 2024 (Cybersecurity and Cyber Resilience Requirements), will be effective on 1 December 2024 and 1 June 2025 respectively.

Joint Standard 2 of 2024 seeks to address the sector's concerns against evolving cyber threats and aims to enhance cyber risk management and resilience. The FSCA is urging financial institutions to cater for and mitigate cyber security risks and threats in line with the nature, size, complexity and risk profile of the financial institution.

Financial institutions, including banks, insurers and their controlling companies have just over six months to establish and maintain a cybersecurity framework, policies, and procedures that meet industry standards and best practices to adequately address cyber-attacks.