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Federal Backstop for Cyber Insurance Should Be Studied, GAO Says

June 21, 2022, 8:00 PM

The Biden administration should assess whether private insurers need a federal assistance to help cover losses from cyberattacks on electricity grids, banks, pipelines and other critical infrastructure, a government watchdog said.

Private insurers have increasingly sought to reduce their exposure to cyberattack claims through policy exclusions and higher premiums, creating potential gaps in coverage against ransomware and data breach risks that could result in “catastrophic losses and risk to national security,” the Government Accountability Office said in a report.

The report recommended that the Treasury and Homeland Security departments jointly conduct the study to help an insurance market that ...