Cyber Security Information Sharing Act

At the end of November, the Senate passed the Cybersecurity Information Sharing Act. This legislation gives private companies legal immunity for sharing data with the Federal Government. This was passed over the protests of many lawmakers and consumer advocates. “In theory, the information shared would be limited to ‘threat indicators’ — data such as technical information about the type of malware used or the ways that attackers covered their tracks while sneaking through systems.” Andrea Peterson — The Washington Post

One of the purposes of this legislation is to help U.S. companies react more quickly to cyberattacks on their computer systems. If a company gets hit with a specific type of hack, the federal government would receive an alert and immediately distribute warnings to other companies.

While cyber laws provide some immunity to businesses, it only applies to information sharing with the Federal Government. Businesses still need Cyber Liability Insurance as part of their risk management program. What we do not know, is what will the Federal Government do with information? It will be impossible to know until the law is fully implemented later in 2016.

Cyber Prevention Tips

• Provide Training to all employees. Helping your employees understand how cyber breaches occur, will go a long way in prevention.
• Keep your operating system, browser, anti-virus, and other critical software up to date.
• Activate your firewall. Firewalls are the first line of cyber defense; they block connections to unknown or bogus sites and will keep out some types of viruses and hackers.
• Secure all passwords and do not share them with anyone.
• Use only secure wireless networks.
• Develop a secure way to allow laptops off the premises. Never keep client information on laptops if used off site.
• When an employee leaves the company or is terminated, turn off the access to their computer. If there is personal information on their computer, have your IT person manage the process.
• Be aware of pushing scams. This involves a hacker using an email or website to install malicious software onto your computer. These web entities are designed to look like a normal email or website, which is how hackers convince their victims to hand over personal information.
• Never open an email from someone you don’t recognize, even if it identifies you by name.

Are you concerned about the future? Is your risk management program designed and prepared for changes in pricing, economic downturns, healthcare, changes in employment laws and the upcoming political elections? A broker or agent who cares about your business will be on the forefront of change. Part of providing outstanding customer service is helping clients understand how current and future trends may affect their risk program.

Every so often we think it is a good idea to talk about what may be happening regarding insurance and risk management. We review many different insurance publications, insurance company bulletins and other professional’s opinions, to analyze these trends. This allows customers to make educated and informed decisions about their individual programs.

What Is Going On That May Impact Your Risk Program

1. Healthcare is still impacting individuals and businesses alike. Employers with less than 50 full-time employees are not subject to the mandate requiring a business to provide health insurance to employees or face penalties.  It was good news for the 5.8 million businesses in the United States with fewer than 50 employees.  Unfortunately for them, other rules imposed through Obamacare have a direct, negative financial impact on how insurance will be priced in the future.  And the future is now.

2. Increased reliance on technology will lead to better run insurers and stable premiums. The development of advanced loss control analytic tools will revitalize insurers focus on claim reduction, and potentially lead to increased investments in loss control. Insurers are using business intelligence to leverage “big data” to help them estimate claims, assets, credit and market data, and gain deeper insights across networks of producers, policy holders, and operations.

3. There are more insurers entering the marketplace. While this can be a good thing, some of these insurers are not financially strong, which might lead to issues at a later date. We always recommend using stable and financially strong insurers.

4. Mobile applications are one of the fastest growing areas of insurance. Businesses are able to manage risk programs through technology.

5. Cyber liability will continue to be a major area of concern for all businesses. The government will continue to legally require businesses to protect customer’s information. Those businesses that don’t will be subject to increased fines.

6. Global terrorism will impact local business. With the U.S. pulling out of the peacekeeping leadership around the world, the impact will be felt through increased attacks on American soil. Terrorism insurance will become more expensive and harder to obtain.