As Cyber Insurance Dries Up, Treasury Department Eyes a Backstop

A US Treasury Department request for public input on a potential federal cyber insurance program highlights a coverage gap for US companies as insurers reduce offerings.

The regulator is seeking public comment until Nov. 14 on whether the government needs to shore up the insurance industry to pay for severe cyberattacks, especially those involving critical infrastructure such as power grids, train lines, hospitals, and utility companies.

Cyberattacks are happening so frequently that underwriting standards sometimes can’t match the fast development and sophistication of the hacks. Insurers are raising rates to levels that make it hard for businesses to find affordable ...