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Financial Institution Letter

FFIEC Issues Joint Statement: Cyber Insurance and Its Potential Role in Risk Management Programs

Summary:

The FDIC, as a member of the Federal Financial Institutions Examination Council (FFIEC), is issuing the attached statement addressing factors to consider regarding cyber insurance.

Statement of Applicability to Institutions with Total Assets under $1 billion: This Financial Institution Letter applies to all FDIC-supervised institutions.

Highlights:

  • FDIC-supervised institutions are not required to maintain cyber insurance. Cyber insurance could offset financial losses from a variety of exposures—including data breaches resulting in the loss of confidential information—that may not be covered by more traditional insurance policies.
  • Traditional general liability insurance policies may not provide effective coverage for all potential exposures caused by cyber events.
  • Cyber insurance does not replace a sound and effective risk management program.
  • This statement does not contain any new regulatory expectations. It is intended to provide awareness of the potential role of cyber insurance in financial institutions' risk management programs.
  • An electronic version of the joint statement, as well as an FFIEC press release, is available at http://www.ffiec.gov/press.htm .

Suggested Distribution:

  • FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:

  • Chief Executive Officer
  • Chief Information Officer
  • Chief Information Security Officer

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

FIL-16-2018
Attachment(s)

Last Updated: April 10, 2018