S.245 - Insure Cybersecurity Act of 2025 (119th Congress)
Summary
The Insure Cybersecurity Act of 2025 aims to improve understanding and accessibility of cyber insurance. It mandates the Assistant Secretary of Commerce for Communications and Information to establish a working group on cyber insurance. This group will define cyber insurance terms, analyze policy language, and develop informative resources for both issuers and customers.
Expected Effects
The Act will likely lead to clearer cyber insurance policies and better-informed consumers. It could also improve the ability of insurers to offer more comprehensive coverage. Ultimately, this aims to reduce cyber risk and the number of cyber incidents.
Potential Benefits
- Enhanced understanding of cyber insurance policies for customers.
- Improved communication between insurers and customers regarding policy provisions.
- Development of recommendations to reduce cyber risk and the cost of cyber insurance.
- Increased availability of information on evaluating cyber insurance coverage.
- Potential for additional coverage options due to improved actuarial and risk data.
Potential Disadvantages
- The working group's recommendations are not binding, potentially limiting the Act's effectiveness.
- The Act relies on voluntary use of disseminated resources, which may reduce its impact.
- The Act's focus on information dissemination may not address underlying issues in the cyber insurance market, such as high costs or limited coverage.
- The creation of a working group and dissemination of resources involves government spending, which could be a concern for some.
- The Act's effectiveness depends on the quality and accessibility of the resources developed and disseminated.
Constitutional Alignment
The Insure Cybersecurity Act of 2025 appears to align with the Constitution, particularly the General Welfare Clause (Preamble). The Act seeks to promote the general welfare by improving cybersecurity and reducing cyber risks. The Act does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).