Maybe, but they’ll probably be much less controversial than the last big insurance mandate – er, tax. There is a growing consensus that the Securities and Exchange Commission is inching toward a cyberinsurance requirement for institutional money managers. Many think that this is a move in the right direction.
In a recent article, Rick Baert discussed the increasing frequency with which money managers are purchasing cyber security insurance, with the percentage of managers carrying the coverage growing from 5% in 2014 to 30% in 2015. At the same time, the SEC has been conducting more frequent manager reviews under its Regulation Systems Compliance and Integrity Rule. In those reviews, the SEC has consistently asked whether managers have cyber coverage and, if so, in what amount. Some see the question simply being posed as the writing on the wall – cyberinsurance will soon become mandatory for money managers.
What about everyone else?