New Bill Aims to Simplify Cyber Insurance: Working Group to Tackle Confusing Policies and Costs by 2026

The Insure Cybersecurity Act of 2025 sets up a new working group to demystify cyber insurance, especially for small businesses. Instead of creating new regulations, this bill, signed into law, focuses on making cyber insurance easier to understand and more accessible. The goal is to help businesses and insurers get on the same page about what's covered and what's not, without imposing any new rules on the insurance industry.

Decoding Cyber Insurance

This bill kicks off a deep dive into the often-murky world of cyber insurance. Within 90 days of enactment, a working group led by the Assistant Secretary of Commerce for Communications and Information will start breaking down policy jargon and figuring out how different policies handle common cyber threats like ransomware attacks. Think of it as a translator between tech-speak, legal-speak, and plain English. They're tasked with explaining everything from technical terms to how policies cover (or don't cover) things like system recovery and even ransom payments (SEC. 3(c)(1)(C)). They'll also look at the challenges insurers face, such as covering big-ticket losses like reputational damage and intellectual property theft.

Real-World Rollout

Imagine a local bakery hit by a ransomware attack. Under current policies, it might be unclear whether the costs of restoring their customer database are covered. This working group aims to clarify such scenarios, providing clear guidance for both businesses and insurance providers. The working group will consult a wide range of folks – from insurance agents and brokers to businesses, academics, and even state regulators (SEC. 3(c)(2)). For instance, a small business owner running an online retail store will have clearer guidelines on what to look for in a cyber insurance policy, and insurers will have better resources on how to explain those policies simply.

The Bigger Picture, Challenges and Next Steps

This isn't just about making policies easier to read. It's about potentially making cyber insurance more affordable and reducing cyber risks overall. By gathering input from insurers, the working group will explore how to improve data sharing and offer more comprehensive coverage (SEC. 3(c)(1)(G)). Within a year of its first meeting, the working group will report its findings and recommendations to Congress (SEC. 3(d)). However, it's important to note that these are just recommendations – the bill doesn't force anyone to adopt them, nor does it give any new regulatory power (SEC. 3(e)).

One potential challenge is ensuring that the working group's recommendations are truly unbiased and comprehensive. Also, while informative resources will be published on the National Telecommunications and Information Administration's website (SEC. 4(c)), the bill doesn't guarantee that these resources will be exhaustive or address every possible scenario (SEC. 4). The law does require outreach to make sure people know about these resources, but it is all voluntary (SEC. 4 (b),(d)).

This effort links up with existing laws like the Critical Infrastructures Protection Act of 2001, by referencing its definition of 'critical infrastructure' (SEC. 2). Ultimately, the Insure Cybersecurity Act aims to create a more transparent and user-friendly cyber insurance market, which could lead to more businesses, especially smaller ones, being better protected against digital threats.