Insure Cybersecurity Act of 2025
- Sponsor
- Sen. Hickenlooper, John W. [D-CO]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Jun 9, 2025
Bottom line
The Insure Cybersecurity Act of 2025 aims to enhance transparency and understanding in the cyber insurance market by creating a federal working group to develop and disseminate educational resources for both policy issuers and customers.
What it actually does
This bill mandates the Assistant Secretary of Commerce for Communications and Information to establish a working group on cyber insurance. The working group will analyze common policy terminology, coverage for cyber incidents like ransomware, and issuer constraints, then develop resources for customers and issuers. Following the working group's report, the Assistant Secretary must disseminate these informative resources publicly to help stakeholders better understand and utilize cyber insurance.
Proponents argue
Supporters argue that the cyber insurance market is complex and often opaque, making it difficult for businesses, especially small businesses and critical infrastructure operators, to understand what they are purchasing and what risks are truly covered. They contend that this bill will demystify cyber insurance, empower customers to make informed decisions, and potentially lead to more effective risk management and a more robust cyber insurance market by improving data and communication for issuers.
Opponents contend
Critics might argue that the bill creates an unnecessary federal bureaucracy (a working group) to address an issue that the private insurance market is already adapting to. They could contend that the definitions and resources developed might not keep pace with the rapidly evolving cyber threat landscape, or that federal involvement could inadvertently lead to future regulatory creep in an area traditionally overseen by states. Some might also suggest that the market is best left to self-regulate and innovate without government intervention.
The bill is concise and clearly written, allowing for a quick and thorough understanding of its provisions within the typical time allotted for legislative review.
Section 3(a), (b), (c)
Establishment and Activities of the Cyber Insurance Working Group
This provision requires the Assistant Secretary of Commerce for Communications and Information to create a working group within 90 days of the bill's enactment. This group, comprising representatives from various federal agencies and state insurance regulators, will analyze cyber insurance policies, terminology, coverage specifics (including for ransomware), and challenges faced by issuers. It will also develop information for customers on evaluating policies and for issuers on clear communication.
Supporters argue
Supporters argue that a dedicated working group with diverse expertise is essential to thoroughly analyze the complex and evolving cyber insurance market. They believe this collaborative approach will yield comprehensive insights and practical recommendations that a single agency or private entity could not achieve alone.
Critics contend
Critics might argue that forming a new working group adds another layer of bureaucracy and could be slow to produce actionable results in a fast-moving field like cybersecurity. They might suggest that existing agencies or private sector initiatives are better equipped to address these issues more nimbly.
Tradeoffs
The tension lies between the desire for comprehensive, multi-stakeholder analysis and the potential for bureaucratic delays or redundancy.
Section 3(c), Section 4
Creation and Public Dissemination of Cyber Insurance Resources
The working group is tasked with developing information and recommendations for both cyber insurance customers (on evaluating coverage and understanding terminology) and issuers (on clear communication and improving coverage options). Following the submission of the working group's report, the Assistant Secretary must publicly disseminate these resources on the NTIA website, ensuring they are applicable to a wide range of stakeholders and include case studies.