Despite the government shutdown, sometimes government gets it right. Recently, government appeared to truly appreciate the benefit of establishing public-private partnerships, including with insurers. Three meetings held at the end of September—two hosted by the Department of Homeland Security (DHS) and one a congressional hearing—exemplified the potential of partnering for national security. If only the insurance industry and government would figure out how to act together more cooperatively to realize those benefits.
Cyber Security and Insurance
On Sept. 23, DHS hosted a kick-off meeting in Arlington, Va., for the Voluntary Program Development Working Group (VPDWG). The group’s goal is to support adoption of a cyber security framework now under development for critical infrastructure and any other interested entities. The meeting was packed. The VPDWG, established by DHS under Presidential Executive Order 13636 Section 8, is supposed to help inform stakeholders that voluntary cyber guidance is coming in early 2014 and to discuss possible industry incentives for adoption. Some believe insurance will play a critical role.
Those in the room represented many of the 16 different critical infrastructure sectors as redefined in the new Presidential Policy Directive (PPD) 21. The insurance industry is hidden away as a critical sector, being part of the Financial Services Sector. (More on that later.)
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This op-ed was first published in Carrier Management on October 9, 2013