OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best thinks that New York’s new cybersecurity requirements, which take effect March 1, 2017, can be a model law for other states in the nation to adopt, as regulators and legislators look to ensure that companies are protecting local businesses and individuals from cyber breaches.
A new Best’s Briefing, “A.M. Best Comments on New York State’s New and Revised Regulations On Cybersecurity,” notes how A.M. Best is highlighting the importance of cybersecurity in its rating process by asking companies to complete a detailed cybersecurity questionnaire with questions related to how each company protects itself and its policyholders against potential cyber-attacks; by regularly discussing the topic during interactive rating meetings and conference calls; and by requiring the completion of certain relevant questions in A.M. Best’s annual Supplementary Rating Questionnaire.
New York is the first state to implement cybersecurity regulations, and they apply to company, including banks and insurance companies, as well as any out-of-state third parties authorized to do business in the state. Among the new rules are that companies must establish and maintain a cybersecurity program, designate a chief information security officer and annually certify compliance. Insurers impacted by the new rules also will be required to scrutinize security at third-party service providers.
A.M. Best recognizes that affected companies likely will face challenges in implementing an effective program within the required timelines. However, A.M. Best believes that in today’s advanced digital environment, new and improved regulations in this area are necessary to address ever-increasing cyber threats.
To access the full copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=258892.
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