Bermuda’s Financial Institutions Brace for Cyber Threats: BMA Unveils New Code of Conduct
Local Regulator Sets Tougher Cybersecurity Expectations for Insurance Sector
In response to escalating cyber threats, the Bermuda Monetary Authority (BMA) has published a new Insurance Sector Operational Cyber Risk Management Code of Conduct. With an effective date of January 1, 2021, the comprehensive document sets mandatory requirements for financial institutions to strengthen their cyber defenses.
The Need for Robust Cybersecurity Measures in Bermuda
- Bermuda: An international finance hub
- Growing pressure to ensure cybersecurity
- Global cyber attacks target financial institutions
Bermuda, as an international finance hub, has faced increasing pressure to maintain robust cybersecurity measures due to digitalization and data-driven innovation. The BMA’s latest directive follows a series of sophisticated cyber attacks against financial institutions.
Provisions of the New Code of Conduct
The Insurance Sector Operational Cyber Risk Management Code of Conduct includes the following provisions:
- Implementing risk assessments
- Updating and testing cyber defenses
- Creating business continuity plans
- Employee training
Financial institutions that fail to comply with these expectations risk facing steep penalties.
Warm Welcome from the Financial Sector
A spokesperson from a leading insurance firm in Bermuda stated, “[The new directive] sets a solid framework for organizations to ensure their systems and processes are up-to-date and able to withstand potential attacks.”
Beyond Insurance: Heightened Expectations for Other Sectors
- Implications extend beyond insurance
- Banking and investment management sectors under pressure
The implications of the BMA’s directive reach beyond the insurance sector, with institutions in banking and investment management increasingly expected to protect their digital assets against relentless cyber threats.
Accessing the Full Document
The full document, which provides detailed guidance on implementing specific cybersecurity controls, can be accessed on the BMA website. Financial institutions are encouraged to begin their preparations and evaluate their readiness for the operational cyber risk management code of conduct.