SEC Cybersecurity Enforcement Spurs New Insurance Solutions in 2024

The SEC has intensified enforcement around cybersecurity disclosures for public companies, following the introduction of new cybersecurity disclosure rules in 2023 and the formation of the Cyber and Emerging Technologies Unit.

 This development has created new compliance challenges as SEC enforcement actions are now scrutinizing responses to cyber incidents beyond traditional privacy violations. Insurers such as QBE North America are responding by enhancing cyber insurance products to cover gaps in regulatory exposures, specifically introducing SEC Disclosure Costs Coverage and Enhanced SEC Regulatory Coverage that address legal and regulatory compliance costs tied to SEC investigations. These policy additions aim to help organizations manage the risks arising from evolving SEC scrutiny, particularly involving emerging technologies like AI.

Public companies are advised to bolster their incident response protocols, incorporating expertise in SEC disclosure requirements to mitigate regulatory risks following cyberattacks. The market reaction from brokers has been positive, indicating strong demand for more comprehensive cyber insurance solutions that align with current regulatory developments.

 Separately, Protecdiv has appointed David Castillo as EVP and head of construction and surety solutions to drive growth in these sectors, leveraging his extensive background in surety and property & casualty insurance. Other industry trends include rising employer health insurance premiums and technological innovations addressing wildfire and musculoskeletal injury risks.