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A.M. BestTV at VCIA: Prospect of Federal Rules for Cyber Puts Pressure on Insurers and States, Say Panelists

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In this A.M.BestTV episode from the annual Vermont Captive
Insurance Association (VCIA) conference in Burlington, VT, captive
insurance executives said new rules at the federal level on cyber
security would pre-empt many state standards, but also would hasten the
adoption of cyber strategies. Click on http://www.ambest.com/v.asp?v=cyberreg818
to view the entire program.

Appearing in the episode are David Provost, deputy commissioner, Vermont
Captive Insurance Division; Sandy Bigglestone, director of captive
insurance, Vermont; and Brenda Stewart, assistant vice president, senior
account manager, captive management services, American International
Group, Inc.
(AIG). For full video coverage of the VCIA 2018
conference, including exclusive executive interviews, visit http://www.ambest.tv/vcia18.

Stewart addressed what these new laws could mean for captives.

"At AIG, the impression was that we had some time to think about these
new laws," said Stewart. "However, all of a sudden, all insurance
companies, including captives, have to start adopting these new laws,
which means that we are going to have to fast forward the way we are
thinking about cyber security. Putting in the protocols and
understanding what we have to do on the documentation and testing, and
assessing those risks."

Bigglestone and Provost highlighted what protocols Vermont has in place
today when a captive is attacked by a cyber-breach.

"Vermont recognizes that many of its captive owners already have some
pretty sophisticated cyber security protocols and plans in place,
including response plans," said Bigglestone.

Provost said, "A very small company reported a breach, told us how and
what happened, as well as what they were doing to fix it. …We have
talked about that a lot with many companies already. The model law is
pretty practical in many respects."

Other VCIA-related episodes of A.M.BestTV include:

  • Better Movement of Information Via Blockchain Should Spark Captive
    Growth, Say Executives
    : Rocco Mancini, consultant, captive
    solutions, Marsh, and Havell Rodrigues, chief executive officer,
    Adjoint, said industry participants and regulators have seen the
    benefits of blockchain technology and are taking early steps to widen
    its adoption: http://www.ambest.com/v.asp?v=blockchain3818.
  • Insolvencies Tied to RRGs Formed for Short-Term Reasons, Says
    Medical Liability Panel
    : Captive experts say that some risk
    retention groups (RRGs) that were formed to take advantage of
    temporary hard-market conditions had poor outcomes compared with RRGs
    that pursued better underwriting and reserving practices: http://www.ambest.com/v.asp?v=medmalrrg818.
  • Soaring Risk: Panelists Explain How They Launched a Hang-Gliding RRG:
    Risk professionals behind a RRG devoted to covering hang gliders and
    their associations describe how they crafted their own risk solution
    after losing traditional coverage: http://www.ambest.com/v.asp?v=hanggliding2818.
  • Traditionally Low Profile, the Captive Sector Draws Increasing
    Scrutiny
    : Executives say captive insurers are drawing
    increased attention from regulators, tax authorities and their own
    sponsors: http://www.ambest.com/v.asp?v=vcia1818.

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. Visit www.ambest.com
for more information
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