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3/22/2016
The Role of Cyber Insurance in Risk Management

On one hand, threats to data privacy are not new for businesses, regulators, or the consumers we protect. Regulators and legislatures have required businesses to protect consumer data for decades. On the other hand, the modern size, scale, and methods of data collection, transmission, and storage all present new challenges. As society becomes more reliant on electronic communication and businesses collect and maintain ever more granular information about their customers in an effort to serve them better, the opportunity for bad actors to inflict damage on businesses and the public increases exponentially. Rather than walking into a bank, demanding bags of cash from a teller, and planning a speedy getaway, a modern thief can steal highly sensitive personal health and financial data with a few quick keystrokes or a well disguised phishing attack from the comfort of his basement couch. Nation states also place great value on acquiring data to either better understand or disrupt U.S. markets, and are dedicating tremendous resources to such efforts.