The Securities and Exchange Commission (SEC) has been ramping up its investigation into the massive hack that affected SolarWinds Corp. and other companies. The regulator has been refining its inquiries and asking for internal communications about the cyber-assault’s impact, probing for gaps in corporate security and for other cyber incidents. The SEC is also trying to determine what the companies may have known but didn’t disclose, following a landmark lawsuit it filed against SolarWinds Corp. in October.

This sharpened inquiry into the victim companies themselves comes amid broader pushback against the agency’s regulatory ambitions. Powerful trade and lobbying groups have criticized the SEC over its regulation of climate policy, cryptocurrencies, market structure, trade processing, and more. The US Chamber of Commerce filed a brief last month asking the court to consider its view, arguing that the SEC is going too far.

As an insurance executive, you may be wondering why this matters to you. The answer is simple: cyberattacks are becoming more frequent and sophisticated, and insurance companies need to be prepared to handle the risks. The SEC’s investigation into the SolarWinds hack is a watershed moment in its enforcement program in terms of cybersecurity. The commission has become very aggressive in scrutinizing public companies' disclosures after a data breach and is now turning its focus to a company’s public statements made before a cybersecurity incident.

This means that insurance companies need to be proactive in their approach to cybersecurity. They need to ensure that their clients are adequately protected and that they have the right insurance policies in place to cover any losses. One solution that insurance executives should consider is parametric insurance.

Parametric insurance is a type of insurance that pays out when a specific event occurs, such as a cyberattack. It is based on predefined parameters, such as the severity of the attack or the amount of data lost. This type of insurance can be tailored to the specific needs of a company and can provide faster payouts than traditional insurance policies.

With Riskwolf, insurance companies can turn real-time data into insurance. Using unique real-time data and dynamic risk modeling, Riskwolf enables insurers to build and operate parametric insurance at scale. This makes it simple, reliable, and fast for insurance companies to provide their clients with the protection they need.

In conclusion, the SEC’s investigation into the SolarWinds hack is a wake-up call for insurance executives. Cybersecurity risks are increasing, and insurance companies need to be prepared to handle them. Parametric insurance is one solution that insurance executives should consider to provide their clients with the protection they need. With Riskwolf, insurance companies can build and operate parametric insurance at scale, making it simple, reliable, and fast. Don’t take chances with cybersecurity risks. Get in touch with Riskwolf today to learn more about how parametric insurance can help your clients.

Source: Insurance Journal