Is There a Light at the End of the Tunnel? The Outlook for Cybersecurity Insurance and Transit in 2024

Abstract:

This White Paper reviews the most recent changes in the cyber risk landscape to public transit agencies, the responses by the insurance market and the transit agencies to these changes, and provides recommendations for how the different segments of the market can work together to manage the risk of cyber attacks. Cybersecurity threats are everywhere, and no business is immune. While the volume of cyberattacks has increased exponentially, the bigger concern for most transit agencies is that the number of successful attacks and the average cost to recover from them has increased as well. Many transit operators have taken steps to shore up their cyber resiliency while others continue to assume that they will not be targeted. Insurance companies have limited coverage, adjusted the cost of coverage, tightened underwriting, and even exited the market. Regulators have responded with increased education, resources, and the imposition of basic cybersecurity requirements.

Publications:

Is There a Light at the End of the Tunnel? The Outlook for Cybersecurity Insurance and Transit in 2024 (Perspective)

Authors:

SCOTT BELCHER

Scott Belcher is a Mineta Transportation Institute Research Associate; Co-Founder of Cybrbase, LLC; and the Chief Executive of SFB Consulting, LLC. In this capacity he works at the intersection of transportation, technology, and communications and advises public and private entities on transformative transportation technology issues such as cybersecurity, sustainability, artificial intelligence, Mobility as a Service, and connected and autonomous vehicles. Scott serves on multiple private advisory boards and is active in several industry associations. Scott received his law degree at the University of Virginia, his MPP at Georgetown, and his BA at the University of Redlands.

TODD CHOLLET

Todd Chollet is a Risk Advisor and Cyber Practice Leader at Sunstar Insurance Group. He advises business leaders across a wide range of industries on comprehensive insurance and risk management solutions with specific expertise in cyber and professional liability. Additionally, he is a part of Sunstar’s Transactional Advisory team, advising on insurance complexities of small and middle market mergers and acquisitions. Todd carries the Commercial Lines Coverage Specialist (CLCS) designation as well as the Certified Insurance Counselor (CIC) designation. Todd received his Bachelor of Business Administration from Western Michigan University and a Doctor of Physical Therapy (DPT) from Washington University School of Medicine in St. Louis.

Published:

April 2024

Keywords:

Cybersecurity

Policy

Safety and security

Transit Insurance