The necessity for cybersecurity insurance for retirement plan fiduciaries has increased substantially due to the rise in cyber incidents since 2019. The cybersecurity insurance market has seen significant growth, estimated to reach $33 billion by 2027, reflecting the increasing concerns around data breaches and cyber threats. Retirement plan advisors are urged to consider cybersecurity insurance to safeguard their practice and assure plan sponsors of their commitment to cybersecurity.
Experts emphasize that the rising dangers associated with cyber threats impact the retirement plan industry, prompting the need for comprehensive cybersecurity measures. Plan advisors are increasingly facing scrutiny from clients regarding their internal cybersecurity practices, highlighting the growing significance of cybersecurity insurance and adherence to cybersecurity guidelines set forth by the Department of Labor. The discussions emphasize the need for a proactive approach to cybersecurity and a thorough understanding of coverage options and evolving cyber risks.
For more on this, visit this week’s episode of 401(k) Real Talk where Fred Barstein lists this story on his most interesting/important stories of the week.
