The US Treasury is considering a potential backstop for cyber insurance due to concerns that private insurers may be unable to absorb the financial impact of large-scale cyber attacks. A review of cyber risk under the Terrorism Risk Insurance Program has been initiated, focusing on the possibility of nation-state attacks and systemic cyber events overwhelming private insurers. This development highlights the growing threat of state-aligned cyber activity, which elevates the risk from a criminal to a geopolitical level. The potential consequences of such events extend beyond the immediate target, posing a risk to critical infrastructure and economic stability. The Treasury's review is a response to the increasing severity and frequency of cyber attacks, which may necessitate a federal intervention to safeguard the economy1. This matter is of significant importance to cybersecurity practitioners, as a federal backstop could have far-reaching implications for the insurance industry and the overall resilience of critical infrastructure.
US Treasury Weighs Cyber Insurance Backstop
⚡ High Priority
Why This Matters
State-aligned threat activity raises the calculus from criminal to geopolitical — implications extend beyond the immediate target.
References
- Bank Info Security. (2026, March 28). US Treasury Weighs Cyber Insurance Backstop. Bank Info Security. https://www.bankinfosecurity.com/us-treasury-weighs-cyber-insurance-backstop-a-31248
Original Source
Bank Info Security
Read original →