Federal bank regulators issued a statement on April 10 alerting banks of risk
management issues regarding cyber insurance coverage.
The statement was issued jointly by the Federal
Reserve, FDIC, OCC, NCUA and CFPB through their affiliation in the Federal Financial
Institutions Examination Council (FFIEC).
Statement cites cyber incident risk and role of insurance
The statement acknowledges the increasing number and
sophistication of cyber incidents, such as data breaches, that make
consideration and evaluation of cyber insurance protections
worthwhile for banks of all sizes.
Although the regulators do not require banks to obtain cyber
insurance coverage, the statement explains that such coverage can
be an important part of a bank's overall risk management
program by offsetting losses stemming from cyber incident risks.
Those losses can result from customer identity theft, fraud and
even extortion. Losses can include income decreases, lawsuits,
regulatory fines
