Carrier Management Publishes Akin Gump Article on Growing Demand for Cybersecurity Ratings

“Cyber FICO Ratings Could Benefit Insurance Underwriting in Multiple Ways,” an article written by Akin Gump litigation partners Michelle Reed and Shawn Hanson and counsel Diana Schaffner, has been published by Carrier Management. The article looks at how cybersecurity ratings for companies could help drive business strategy, and it examines “the need for more uniform standards among ratings companies.”

The goal of a security rating, the authors write, is to gauge a company’s “general degree of cyber risk and how prepared the company is to withstand cyber attacks or cyber incidents.” Similar to a FICO score from the Fair Isaac Corporation, a security rating would rely on “external data to provide a risk profile without need for input or cooperation from the rated company.”

Reed, Hanson and Schaffner then discuss the benefits of having security ratings as well as the potential risks. They also provide some thoughts on why this is the right time to obtain a cybersecurity rating, pointing out that they help support “informed decision-making without the need for cooperation from the rated company.”