Wade Clark Mulcahy LLP

<p style="text-align: justify;">In recent years, the need for companies to take precautions with respect to cyber security, and risks insurers need to analyze in the cyber insurance space, have been widely-reported.  Current events always seem to be relevant in this field.  The recent news about the tensions between the United States and Iran are no exception.</p>
<p style="text-align: justify;">Due to the conflict with Iran, the New York Department of Financial Services (DFS) has issued <a href="https://www.wcmlaw.com/wp-content/uploads/2020/01/a-warning.pdf">a warning</a> to banks, insurers and other businesses it supervises about an increased risk of cyber attacks orchestrated by hackers associated with the Iranian government as a result of the airstrike that killed Iran’s top general.</p>
<p style="text-align: justify;">DFS issued a letter to all regulated entities stressing the need for more stringent cybersecurity precautions in light of the mounting tensions between the U.S and Iran after the air strike that killed General Qasem Soleimani.</p>
<p style="text-align: justify;">Specifically the letter states “ DFS therefore strongly recommends that all regulated entities heighten their vigilance against cyberattacks…While currently there are no specific, credible reports of new Iranian-sponsored cyberattacks in the past few days, all regulated entities should be prepared to respond quickly to any suspected cyber incident.”</p>
<p style="text-align: justify;">DFS’ warning came on the same day that the U.S. Homeland Security issued its own warning about the mounting Iranian hacking threat.</p>
<p style="text-align: justify;">Relations with countries are always worth monitoring for obvious reasons, but insurers would be wise not to overlook the risks associated with cyberattacks.</p>
<p style="text-align: justify;"><span>Thanks to Jon Avolio for his contribution to this post.  Please email <a href="mailto:mgauvin@wcmlaw.com">Michael Gauvin </a></span><span>with any questions.</span></p>