How does cyber insurance interact with regulatory requirements for data protection?

Compliance with data protection regulations such as GDPR or HIPAA can positively influence a company’s ability to secure cyber insurance. Insurers often view companies that demonstrate strong adherence to these regulations as lower risk entities for potential data breaches. By implementing robust data protection practices and being compliant with these regulations, a company showcases its commitment to safeguarding sensitive information, which can result in more favorable terms and lower premiums when seeking cyber insurance coverage.