Legislation Likely on Cybersecurity Insurance

Legislation to encourage businesses to purchase data breach insurance is likely to re-emerge as the new U.S. Congress convenes this month, according to an official with the National Association of Insurance Commissioners (NAIC).

The Data Breach Insurance Act, H.R. 6032, would amend the Internal Revenue Code to allow a business tax credit for the purchase of qualified data breach insurance. The credit would apply for five years and be equal to 15 percent of the annual premiums paid or incurred for the insurance in the ordinary course of the taxpayer’s trade or business.

The bill would establish a national data security and breach notification standard for financial institutions and retailers to better protect consumer financial data.

President Barack Obama has asked the nonpartisan Commission on Enhancing National Cybersecurity, which was tasked to develop short- and long-term recommendations to strengthen cyber security in the public and private sectors, to brief President-elect Donald Trump at the earliest possibility.   Source: Business Insurance