The threat to information and financial systems is ever-growing. These threats of cyberattacks from terrorist organizations and criminals has spawned new cyber security regulations for banks and other financial institutions.
New York State Department of Financial Services
On March 1, 2017, new regulations went into effect. Promulgated by the New York State Department of Financial Services, they are designed to promote the safety and security of customer information and information technology systems of banks. Financial institutions are required to assess their specific risks and design a robust program to address the risks. Insurance for financial institutions is available and should be purchased as part of the program instated.
Most traditional policies do not cover damages due to data breaches. If your institution has already invested in cyber insurance for financial institutions, review your policy and make sure it is up to the standards of new regulations. Check that limits or sub-limits associated with legal costs, settlements, fines and penalties and investigation costs are covered at least to the extent required.
As cyberattacks become more prevalent, states are reacting with new regulations. The New York State of Department of Financial Services recently enacted new regulations for financial institutions with regards to cyber security. Insurance should be a prominent component of any risk mitigation plan.