IA of Hong Kong published the guideline GL20 on cyber-security for authorized insurers. The guideline sets the minimum standard for cyber-security that authorized insurers are expected to have in place and the general guiding principles which the IA uses in assessing the effectiveness of the cyber-security framework of an insurer. The guideline applies to all authorized insurers, except for captive insurers and marine mutual insurers, in relation to the insurance business they conduct in, or from, Hong Kong. GL20 shall take effect on January 01, 2020.
Cyber risk is one of the most significant operational risks that insurers face, particularly with regard to the business operations they conduct digitally and online. Cyber-security incidents can result in financial loss, business disruption, damage to reputation, and other adverse consequences to an insurer. Accordingly, this guideline requires authorized insurers to put in place resilient cyber-security frameworks to protect their business data and the personal data of their existing or potential policyholders and to ensure continuity of their business operations. The guideline stipulates that authorized insurers should establish and maintain a cyber-security strategy and framework tailored to mitigate relevant cyber risks that are commensurate with the nature, size, and complexity of their business. The cyber-security strategy and framework should be endorsed by the Board of the insurer. Insurers should also develop a cyber-security incident response plan, which covers scenarios of cyber-security incidents and corresponding contingency strategies to maintain and restore critical functions and essential activities in such scenarios.
Keywords: Asia Pacific, Hong Kong, Insurance, Cyber Risk, Guideline, Cyber Guidance, IA
Previous ArticleIAIS Publishes Roadmap for 2019
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.