Cybersecurity: Integral to Overall Risk Management for Insurers and TPAs

By Jennifer Osborn Nix

Recent data breaches have brought cybersecurity to the attention of insurance companies, and serve as a reminder to third party administrators (“TPAs”) that cybersecurity issues are a serious compliance and regulatory concern. In February, the New York Department of Financial Services (“DFS”) became the first insurance regulator to address cybersecurity, issuing the “Report on Cyber Security in the Insurance Sector,” which summarizes the results of a survey completed by 43 insurers about their cybersecurity programs, costs, and future plans.