New York’s Insurance Regulator Announces Results of Cybersecurity Survey and Previews New Regulatory Initiatives
On February 9, the New York Department of Financial Services (DFS) released a Report on Cyber Security in the Insurance Sector (Report), summarizing the results of a survey completed by 43 insurers about their cybersecurity programs, costs and future plans. The Report also announced a series of measures that DFS will take in the future to help strengthen cybersecurity in the insurance sector. These measures include: (i) targeted assessments of “cybersecurity preparedness” at insurance companies as part of the DFS examination process; (ii) proposing enhanced regulations requiring insurers to meet heightened standards for cybersecurity, including possible use of multi-factor authentication; and (iii) exploring measures related to the representations and warranties insurers receive from third-party vendors that handle customer data, as well as other measures.
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