Featured Product

    PRA Issues Policy Statement on Cyber Insurance Underwriting Risk

    July 05, 2017

    The PRA published policy statement PS15/17 and supervisory statement SS4/17 on cyber insurance underwriting risk. PS15/17 provides feedback to responses to the consultation paper CP39/16, titled “Cyber insurance underwriting risk.” SS4/17 sets out the PRA’s final expectations regarding the prudent management of cyber underwriting risk. Both the statements are relevant to all UK non-life insurance and reinsurance firms and groups within the scope of Solvency II, including the Society of Lloyd’s and managing agents.

    The SS4/17 expands on the PRA’s general approach as set out in its insurance approach document. By clearly and consistently explaining its expectations of firms in relation to the particular areas addressed, the PRA seeks to advance its statutory objectives of ensuring the safety and soundness of the firms it regulates and contributing to securing an appropriate degree of protection for policyholders. The PRA’s expectations are split into the three broad areas of non-affirmative cyber risk, cyber risk strategy and risk appetite, and cyber expertise. The PRA had received thirteen responses to CP39/16 and has amended the supervisory statement accordingly.

     

    In this context, cyber insurance underwriting risk is defined as the set of prudential risks emanating from underwriting insurance contracts that are exposed to cyber-related losses resulting from malicious acts and non-malicious acts involving both tangible and intangible assets. Malicious could include cyber-attack and infection of an IT system with malicious code while the examples of non-malicious attacks are loss of data, accidental acts, or omissions. The PRA expects firms to be able to identify, quantify, and manage the risks emanating from cyber underwriting risk both in terms of affirmative and "silent" cover.


    Related Links

    PS15/17 (PDF)

    SS4/17 (PDF)

    CP39/16 (PDF)

    Keywords: Europe, PRA, United Kingdom, Insurance, Prudential Risk, Cyber Risk, Cyber Insurance

    Featured Experts
    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4164