Cyber Insurance: Legal Challenges and Regulatory Responses

Abstract

Cyber insurance has become a necessity for organizations to reduce risks from cyber-attacks. But cyber insurance law and regulation is highly complicated and problematic. These include unclear policy language, problems with cyber-related blame, privacy regulations, and the threat of moral hazard. Also, the regulatory response has lacked swiftness to accommodate, leaving policy language in heterogeneous forms and jurisdictional uniformity. This paper addresses these issues, examines existing regulation, and presents solutions to the legal grey areas in the cyber insurance space. With a focus on the most pressing issues and a review of the judiciary, the paper will help to deliver a comprehensive overview of the changing cyber insurance landscape and recommend areas for further improvement in regulatory coherence, policy clarity and legal protections for both insurers and insureds.