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Summary:

The �౦��Ϸ����, as a member of the Federal Financial Institutions Examination Council (FFIEC), is issuing the attached statement addressing factors to consider regarding cyber insurance.

Statement of Applicability to Institutions with Total Assets under $1 billion: This Financial Institution Letter applies to all �౦��Ϸ����-supervised institutions.

Highlights:

• �౦��Ϸ����-supervised institutions are not required to maintain cyber insurance. Cyber insurance could offset financial losses from a variety of exposures—including data breaches resulting in the loss of confidential information—that may not be covered by more traditional insurance policies.
• Traditional general liability insurance policies may not provide effective coverage for all potential exposures caused by cyber events.
• Cyber insurance does not replace a sound and effective risk management program.
• This statement does not contain any new regulatory expectations. It is intended to provide awareness of the potential role of cyber insurance in financial institutions' risk management programs.
• An electronic version of the joint statement, as well as an FFIEC press release, is available at .

Suggested Distribution:

• �౦��Ϸ����-Supervised Banks (Commercial and Savings)

Suggested Routing:

• Chief Executive Officer
• Chief Information Officer
• Chief Information Security Officer

Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).